IMPLEMENTATION LEVEL

NFI

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

firm-specific

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 07 Jul 2015 | Removal date: open ended
Still in force

State loan

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.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

495 Railway & tramway locomotives & rolling stock; parts
8602 Other rail locomotives; locomotive tenders.
860210 Dieselelectric locomotives
860290 Other

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