ANNOUNCEMENT 11 Jan 2012

The Brazilian National Development Bank (i.e. BNDES by its acronym in Portuguese) launched the Prorenova credit line to encourage the production of sugar cane.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 12 Jan 2012 | Removal date: 31 Dec 2013

State loan

On January 11, 2012, the BNDES announced the creation of "Prorenova" a BRL 4 billion (USD 2.2 billion) credit line to support the production of sugar cane through financing the renovation of old sugarcane plantations and the expansion of the planted area. 

In the case of medium-large and large companies, the interest rate is composed of the long-term interest rate target (i.e. TJLP by its acronym in Portuguese) plus 1.3% of basic BNDES remuneration. In addition, there is also a financial intermediation fee of 0.5% and the repatriation agent's remuneration.

As for SMEs, the interest rate is composed of the long-term interest rate target (i.e. TJLP by its acronym in Portuguese) plus 0.9% of basic BNDES remuneration.

The program has a maximum BNDES participation of up to 80% of the eligible items in the case of medium-large and large companies, and 90% in the case of SMEs. The total term is limited to 72 months, including the grace period of a maximum of 18 months.

The program is valid until December 31, 2012.

Update

According to a BNDES press release published on January 10, 2013, the "Prorenova" program was extended until December 31, 2013.

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