ANNOUNCEMENT 27 Jan 2015In January 2015, the government of Brazil announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
BNDES press release of 27 January 2015 (in Portuguese): http://www.bndes.gov.br/SiteBNDES/bndes/bndes_pt/Institucional/Sala_de_Imprensa/Noticias/2015/Todas/20150127_piraque.html
Valor Econ?mico, 2 January 2012, 'Piraqu? consolida exporta??es para Jap?o e Estados Unidos': http://www.valor.com.br/arquivo/255837/piraque-consolida-exportacoes-para-japao-e-estados-unidos
On 27 January 2015, the Brazilian Development Bank (BNDES) announced that is financing Indústria de Produtos Alimentícios Piraquę S.A. with a loan.
The company is one of the biggest pasta and cookie producers in the Southeast Region of Brazil and also exports to Japan and the USA. The loan, worth 88 million real (USD 28.94 million), is going to be used to to build a new plant in Queimados (Rio de Janeiro). The sum represents 42% of the total cost of the new site and is backed by BNDES's credit line for fixed assets (BNDES Finem).
The measure is considered discriminatory, since in general, the Brazilian Development Bank provides credits with below-market interest rates only to legal persons (private or public) based in Brazil. Besides this, the bank imposes local content requirements on goods (mainly capital goods), services and software financed through its credit lines.
The GTA includes state guarantees and other financial incentives thatare likely to affect the restructuring and performance of firms facinginternational competition, whether from imports, in export markets, andfrom foreign subsidiaries.