ANNOUNCEMENT 09 Jan 2014

In January 2014, the government of Brazil announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Brazilian Development Bank (BNDES), 9 January 2014, 'BNDES aprova R$ 11,7 mi para amplia??o de rede de supermercados no Paran?': http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Sala_de_Imprensa/Destaques_Primeira_Pagina/20140109_supermercado.html#

Colby, Seth. (2012). Explaining the BNDES: what it is, what it does and how it works. CEBRI Artigos, Volume 3, Ano VII, p. 6: http://www.cebri.org/portal/publicacoes/cebri-artigos/explaining-the-bndes

BNDES, Condi??es espec?ficas: http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Apoio_Financeiro/clientes.html

BDNES, Itens pass?veis de apoio condicionado: http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Apoio_Financeiro/itens_apoio.html


Inception date: 09 Jan 2014 | Removal date: open ended
Still in force

Local sourcing

On 9 January 2014, the Brazilian Development Bank BNDES announced its financial support for the enlargement of one and the construction of three supermarkets of the Cidade Cançăo chain in the federal state of Paraná.
 
The supermarket chain, which belongs to the company Companhia Sulamericana de Distribuiçao, receives 35% of the investments through BNDES. In addition to that, the company receives 4.8 million Real (US$ 2 million) from the BDNES Finame program which supports the purchase of nationally produced machines and equipment. The investments are estimated to generate 305 jobs.
 
The Brazilian Development Bank provides credits with below-market interest rates to legal persons (private or public) with headquarters and administrations in Brazil.In the case of companies with headquarters abroad, majorityshareholders (private or public) need to have residence in Brazil. Besides this, the bank imposes local content requirementson goods (mainly capital goods), services and software. However, itmakes exceptions when there is no national production of those goods.
 
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.

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
N/A
Inception date: 09 Jan 2014 | Removal date: open ended
Still in force

State loan

On 9 January 2014, the Brazilian Development Bank BNDES announced its financial support for the enlargement of one and the construction of three supermarkets of the Cidade Cançăo chain in the federal state of Paraná.
 
The supermarket chain, which belongs to the company Companhia Sulamericana de Distribuiçao, receives 35% of the investments through BNDES. In addition to that, the company receives 4.8 million Real (US$ 2 million) from the BDNES Finame program which supports the purchase of nationally produced machines and equipment. The investments are estimated to generate 305 jobs.
 
The Brazilian Development Bank provides credits with below-market interest rates to legal persons (private or public) with headquarters and administrations in Brazil.In the case of companies with headquarters abroad, majorityshareholders (private or public) need to have residence in Brazil. Besides this, the bank imposes local content requirementson goods (mainly capital goods), services and software. However, itmakes exceptions when there is no national production of those goods.
 
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.

 
N/A