ANNOUNCEMENT 09 Feb 2009

In February 2009, the government of Brazil announced .

NUMBER OF INTERVENTIONS

2

  • 2 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Ministry of Development, Industry, and Trade (MDIC), news item of 9 February 2009 (in Portuguese): http://www.mdic.gov.br/sitio/interna/noticia.php?area=1&noticia=9178

Reuters, 9 July 2009, 'Brazil to help finance Cuban port project': http://www.reuters.com/article/2009/07/09/cuba-brazil-port-idUSN0946514120090709

BBC Brasil, 31 January 2012, 'S?mbolo do decl?nio cubano, porto revive com investimento brasileiro': http://www.bbc.co.uk/portuguese/noticias/2012/01/120131_cuba_porto_jf_is.shtml

Reuters, 23 September 2013, 'Cuba bids to lure foreign investment with new port and trade zone': http://www.reuters.com/article/2013/09/23/us-cuba-investment-idUSBRE98M12H20130923

Ministry of Development, Industry, and Trade (MDIC), news item of 27 January 2014 (in Portuguese): http://www.mdic.gov.br/sitio/interna/noticia.php?area=1&noticia=12971

Reuters, 27 January 2013, 'Cuba opens new port built with Brazilian aid': http://www.reuters.com/article/2014/01/27/cuba-brazil-port-idUSL2N0L10XO20140127

Estad?o, 27 January 2014, 'Brasil financia mais US$ 290 milh?es para Cuba ativar seu principal porto': http://www.estadao.com.br/noticias/internacional,brasil-financia-mais-us-290-milhoes-para-cuba-ativar-seu-principal-porto,1123505,0.htm

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 Feb 2009 | Removal date: open ended
Still in force

Local sourcing

On 9 February 2009, the Brazilian Ministry for Industry, Development, and Trade (MDIC) and the Brazilian Agency for Industrial Development (ABDI) signed an agreement with the Cuban government which includes a loan of US$300 million for the development of the Port of Mariel (about 45km from Havana).The Brazilian Development Bank BNDES is going to provide the loans which will come in stages and are supposed to ultimately account for US$682 million. The Mariel Special Development Zone is a container port which will be developed by the Brazilian construction company Groupo Odebrecht SA.
 
The agreement included that out of the total costs of US$957 million, Cuba had to spend at least US$802 on services by Brazilian companies. The government estimated that about 400 Brazilian providers are supposed to benefit and about 153,000 jobs will be created from the subsidized BNDES credit.
 
On 24 January 2014, with the formal opening of the port, Brazil announced that it will release a second loan of US$290 million which will again be issued by the BNDES. The first credit financed the construction of the port, the second one will develop the Mariel Special Development Zone with the aim of strengthening trade between the two Latin American countries.
 
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.

AFFECTED SECTORS

 
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AFFECTED PRODUCTS

 
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Inception date: 09 Feb 2009 | Removal date: open ended
Still in force

Trade finance

On 9 February 2009, the Brazilian Ministry for Industry, Development, and Trade (MDIC) and the Brazilian Agency for Industrial Development (ABDI) signed an agreement with the Cuban government which includes a loan of US$300 million for the development of the Port of Mariel (about 45km from Havana).The Brazilian Development Bank BNDES is going to provide the loans which will come in stages and are supposed to ultimately account for US$682 million. The Mariel Special Development Zone is a container port which will be developed by the Brazilian construction company Groupo Odebrecht SA.
 
The agreement included that out of the total costs of US$957 million, Cuba had to spend at least US$802 on services by Brazilian companies. The government estimated that about 400 Brazilian providers are supposed to benefit and about 153,000 jobs will be created from the subsidized BNDES credit.
 
On 24 January 2014, with the formal opening of the port, Brazil announced that it will release a second loan of US$290 million which will again be issued by the BNDES. The first credit financed the construction of the port, the second one will develop the Mariel Special Development Zone with the aim of strengthening trade between the two Latin American countries.
 
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.

 
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