The Brazilian Development Bank BNDES announced to finance 19 trains with 70.5 million real (USD 22.4 million) through BNDES-PSI, its investment support credit line. The loan represents 50% of the total investment.
The loan goes to GE Transportes Ferroviários S.A. which produces the trains. The trains are then acquired by VLI Multimodal S.A. and Rumo Logística Operacional Multimodal S.A, two logistics providers which connect warehouses (e.g. agricultural stocks) to Brazilian ports.
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. In the abovementioned loan, the interest rates are at 7 percent per annum for SMEs and 9.5 percent per annum for all other types of enterprises, whereas the Central Banks overnight interest rate is at about 14 percent.