ANNOUNCEMENT 30 Jun 2015

In June 2015, the government of Brazil announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



BNDES, press release of 30 June 2015, 'BNDES renova programa de apoio a investimentos em design com or?amento de R$ 1 bilh?o ': http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Sala_de_Imprensa/Noticias/2015/Inovacao/20150630_prodesign.html

BNDES, 'Programa BNDES de Apoio a Investimentos em Design, Moda e Fortalecimento de Marcas - BNDES Prodesign': http://www.bndes.gov.br/apoio/prodesign.html

Associa??o Brasileira da Ind?stria T?xtil e de Confec??o (Abit), 31 July 2015, 'BNDES renova programa de apoio para empresas de moda e design': http://www.exportnews.com.br/2015/07/bndes-renova-programa-de-apoio-para-empresas-de-moda-e-design/


Inception date: 30 Jun 2015 | Removal date: 28 Dec 2016
Still in force

State loan

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:

  • Duration: Prodesign was supposed to end on 31 December 2015, but was extended until 31 December 2016.
  • Funding: The original fund of 500 million Real (USD 159 million) was increased to 1 billion Real (USD 320 million).
  • Eligible sectors: Additional economic sectors are now eligible for Pordesign loans, including glasses, suitcases, bags, fashion accessories, sports material, sanitary utilities and other items used in civil construction. Previously, Prodesign only supported fashion, furniture, personal hygiene, perfumes, cosmetics, domestic supplies (including electronic supplies), toys, sanitary metals, jewelry, watches, packaging, and ceramic tiles.
  • Local content: Retailers have now to adhere to a national content of at least 60 percent.

 
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.

AFFECTED SECTORS

 
282 292 293 294 321 362 369 372 384

AFFECTED PRODUCTS

 
392220 392290 392610 392620 392630 392640 392690 401511 401519 401590 420212 420219 420221 420222 420229 420231 420232 420239 420292 420299 420310 420329 420330 480300 611120 611130 620920 620930 621710 640219 640220 640291 640299 640319 640351 640359 640391 640399 640411 640419 640420 691010 691090 950629 950640 950651 950661 950662 950669 950670 950691 950699
(+ 42 more)
Inception date: 30 Jun 2015 | Removal date: 28 Dec 2016
Still in force

Local sourcing

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:

  • Duration: Prodesign was supposed to end on 31 December 2015, but was extended until 31 December 2016.
  • Funding: The original fund of 500 million Real (USD 159 million) was increased to 1 billion Real (USD 320 million).
  • Eligible sectors: Additional economic sectors are now eligible for Pordesign loans, including glasses, suitcases, bags, fashion accessories, sports material, sanitary utilities and other items used in civil construction. Previously, Prodesign only supported fashion, furniture, personal hygiene, perfumes, cosmetics, domestic supplies (including electronic supplies), toys, sanitary metals, jewelry, watches, packaging, and ceramic tiles.
  • Local content: Retailers have now to adhere to a national content of at least 60 percent.

 
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.

 
282 292 293 294 321 362 369 372 384
 
392220 392290 392610 392620 392630 392640 392690 401511 401519 401590 420212 420219 420221 420222 420229 420231 420232 420239 420292 420299 420310 420329 420330 480300 611120 611130 620920 620930 621710 640219 640220 640291 640299 640319 640351 640359 640391 640399 640411 640419 640420 691010 691090 950629 950640 950651 950661 950662 950669 950670 950691 950699
(+ 42 more)