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BNDES moves 30B reais Treasury repayment to April

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BNDES moves 30B reais Treasury repayment to April

Banco Nacional de Desenvolvimento Econômico e Social said it will wait until April 2 to return 30 billion Brazilian reais in resources to the National Treasury, a deviation from a previous statement from the bank's CEO that said it would repay the amount in February.

The allocation is the first of the two tranches of repayment, totaling 130 billion reais, that the government is asking the bank to return to the Treasury in 2018. The remaining 100 billion reais will be repaid at the beginning of the second half of 2018, and will be dependent on Brazil's economic recovery in the first half of the year, BNDES said in a statement.

The schedule of the return is "strictly [based on] financial and operational reasons for the bank," BNDES said.

The move runs opposite from a previous comment made by BNDES' CEO Paulo Rabello de Castro saying the development bank would make the 30 billion reais repayment in February. Rabello added at the time that they were "making an effort" to repay the remaining 100 billion reais before a Feb. 23 deadline.

Under the leadership of Luiz Inácio Lula da Silva and Dilma Rousseff, the National Treasury had transferred more than 500 billion reais into BNDES. The Brazilian development bank noted that it made four repayments to the Treasury in the last three years, including 30 billion reais in 2015, 100 billion reais in 2016 and 50 billion reais in 2017.

Meanwhile, BNDES said disbursements totaled 3.9 billion reais in January, down 18% from the same period in 2017. In the last 12 months, concessions made by the development bank total 69.9 billion reais, declining 20%.

Micro, small and medium enterprises received disbursements worth 2.2 billion reais, accounting for 56% of the total disbursements.

As of Feb. 27, US$1 was equivalent to 3.25 Brazilian reais.