Development bank pandemic support for companies reaches BRL 105 billion

Rio de Janeiro RJ 19 07 2019 O presidente empossado do BNDES, Gustavo Montezano, assume o cargo em cerimônia na sede do banco no centro do Rio.foto Tania Rego/ Agencia Brasil

Since the beginning of the coronavirus pandemic, Brazil’s National Development Bank (BNDES) has issued BRL 105 billion (USD 18.3 billion) to companies as emergency aid.

According to BNDES president Gustavo Montezano, the money went to 258,000 Brazilian companies, 98 percent of which were micro, small and medium-sized enterprises. According to Mr. Montezano, the funds were directed to paying overdue wage bills.

Moreover, the BNDES settled its BRL 20 billion debt with the Guarantee Fund for Length of Service (FGTS), a pecuniary fund from which individuals can withdraw amounts upon being made unemployed. In all, emergency measures from the development bank total BRL 125 billion during the pandemic.

Emergency actions aimed at the public sector totaled BRL 3.9 billion in suspensions of payments from states and municipalities. Mr. Montezano said that payments that should be made this year have been postponed. This means that loans granted will start to be repaid from January 2021 onward.