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BNDES to return 30B reais to state coffers on May 31


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BNDES to return 30B reais to state coffers on May 31

Banco Nacional de Desenvolvimento Econômico e Social CEO Joaquim Levy said the Brazilian state-owned bank will return another 30 billion reais to the National Treasury on May 31, O Estado de S.Paulo reported.

Levy previously said BNDES would pay the amount in early May. The bank was formally asked to return 126 billion reais of funds to the state coffers in 2019, almost 5x the 26 billion reais repayment previously considered.

The administration of President Jair Bolsonaro has promised to recover what it has called "extremely expensive" subsidies granted to BNDES by previous governments.

Levy added that BNDES' loan disbursements are expected to fall below 1% of GDP this year, a level which "has not been seen since the beginning of privatization processes," in the 1990s.

The bank has reduced its reliance on loans, in part due to asset divestments and the return of resources to the Treasury, Levy said. However, the bank's loan disbursements rebounded in the first quarter after declining for five consecutive years.

As of May 27, US$1 was equivalent to 4.02 Brazilian reais.