trending Market Intelligence /marketintelligence/en/news-insights/trending/5JFp-z4S-JXB2eKfiI5uGA2 content esgSubNav
In This List

Brazilian government launches new BNDES interest rate to reduce subsidies

Blog

Commercial Banking: June 22nd Edition

Blog

Commercial Banking Newsletter June Edition - 2022

Podcast

Street Talk | Episode 96: Considering recession risks, prospects that the Fed achieves a 'soft landing'

Blog

Insight Weekly: US recession outlook; mortgage activity slowdown; climate disclosure push


Brazilian government launches new BNDES interest rate to reduce subsidies

Brazil's Ministry of Finance on March 31 said its establishing a new interest rate as of Jan. 1, 2018, in order to gain macroeconomic stability, reduce subsidies and increase monetary policy effectiveness of state-run development bank Banco Nacional de Desenvolvimento Econômico e Social, or BNDES, as was previously reported.

The interest rate, named TLP, or Long Term Rate, will be aligned with the National Treasury's inflation-linked bonds and will be calculated on monthly basis instead of a quarterly basis, like the current long-term interest rate, the TJLP, according to a statement.

Overall, the TLP will provide macroeconomic stability on multiple levels, the ministry said, such as increasing contract security, encouraging long-term private financing and contributing to the country's fiscal balance. It will also allow BNDES to expand its operations in an integrated manner to the capital market, the statement noted.