ANNOUNCED AS TEMPORARYNo
On 30 June 2015, the Brazilian Development Bank BNDES amended its Prodesign credit line which was launched in 2013 and grants loans to the creative sector (see measure no. 10216 under Related Measures).
The amendments include:
Subsidies and local content requirements
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
The measure is considered discriminatory since, in general, the Brazilian Development Bank provides credits with below-market interest rates only to legal persons (private or public) based in Brazil. BNDES's long term interest rate was at 6 percent for the period of April to June 2015. The Central Bank's overnight interest rate however is at about 14 percent.
Besides this, the bank imposes local content requirements on goods (mainly capital goods), services and software financed through its credit lines.
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