ANNOUNCEMENT 29 Apr 2010In April 2010, the government of Brazil announced a change in financial export support.
NUMBER OF INTERVENTIONS
BACEN Resolution n? 3851, from April 29th, 2010 - http://www.in.gov.br/imprensa/visualiza/index.jsp?jornal=1&pagina=63&data=30/04/2010
Resolution n? 3951- http://www.in.gov.br/imprensa/visualiza/index.jsp?jornal=1&pagina=44&data=01/10/2010
The Brazilian Development Bank (BNDES) implemented a new credit line amounting to BRL 7 billion (ca. USD 4.2 billion) for the pre-shipment phase of exports of consumer goods, in a decision announced on 29 April 2010. The initial interest rate is 7% per year until the end of June when it will be increased to 8% per year.
It is worth noting that on 29 April 2010 the Brazilian central bank's target overnight interest rate was 9.5%, suggesting a degree of subsidisation is factored into the credit line.