ANNOUNCEMENT 24 Nov 2009
In November 2009, the Brazilian government created the Investment Support Program (Programa de Sustentaçao do Investimento, PSI) and given a maximum financing total of $25.4 billion. PSI was created to stimulate the production, acquisition and exports of capital goods and innovation. It offers financial incentives to Brazilian companies that have reached a nationalisation index of at least 60% in their production.
The Brazilian government extended this program every year until 2016. This program offered financing until 31 December 2015.
NUMBER OF INTERVENTIONS
The Brazilian National Development Bank, O banco nacional do desenvolvimento,
On November 24, 2009, the Brazilian government created the Investment Support Program (Programa de Sustentaçao do Investimento, PSI) via law number 12.096. It was given a maximum financing budget of $25.4 billion ($R 44 billion).
It offers three financing instruments to support domestic production and innovation. These are:
Besides the three financing instruments for domestic production, the Investment Support Program (PSI) also included a new trade finance facility.
PSI Pre-Shipment Exports provides financing for the pre-shipment operations for products that are exported outside of Brazil. This financing may be given to Brazilian companies of any size. BNDES' maximum participation rate is of 70% in SMEs and 50% of bigger companies. Interest rates are 10% for SMEs and 11% for bigger companies.
To benefit from the new Investment Support Program (Programa de Sustentaçao do Investimento, PSI), participating firms need to achieve a "nationalisation index" of 60% or higher in their production process.