Banco Nacional de Desenvolvimento Econômico e Social said Aug. 14 that it paid 40 billion reais back to the Brazilian Treasury and that it plans to transfer another 30 billion reais later in August.
The repayments represent the final steps in a plan to return a total 310 billion by the end of the year, according to a statement from the development bank. So far, BNDES has settled nearly 90% of the target, or 280 billion reais, since it began repaying the government in 2015. In July, BNDES President Dyogo Oliveira said that the company planned to accelerate the paybacks in effort to leave behind its "history of dependence" on the treasury.
Under terms defined by the country's TCU audit court, the funds returned can only be used by the government to service its own public debt, which means that they cannot be used for other means such as investments or primary expenditures.
Therefore the bank estimates that the stock of debt repaid will have contributed by the end of 2018 to an accumulated 5% decrease in the public debt to GDP ratio.
Meanwhile, the government reportedly needs resources to fulfill the 2018 budget's so-called "golden rule," which requires that credit operations from the executive branch do not exceed its own capital expenditures, including investments and amortizations.
The state-owned bank said that the 60.14 billion reais it paid in the first half of 2018 was the main reason behind a 3.8% decline in its total assets in the period.
As of August 13, US$1 was equivalent to 3.90 Brazilian reais.