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BNDES to accelerate return of resources to Brazil's treasury, president says

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BNDES to accelerate return of resources to Brazil's treasury, president says

Banco Nacional de Desenvolvimento Econômico e Social, or BNDES, plans to accelerate the return of resources it owes to Brazil's national treasury as the state-owned development bank looks to leave behind its "history of dependence" on the institution, Valor Econômico reported, citing the bank's President Dyogo Oliveira.

BNDES returned a total of 60 billion reais to the treasury in 2018 and is expected to repay another 70 billion reais before the end of August. The government reportedly needs the resources to fulfill the 2018 budget's so-called "golden rule," which requires that credit operations of the executive arm do not exceed capital expenditures, including investments and amortizations.

According to Oliveira, BNDES is having discussions with the finance ministry on how to anticipate its remaining payments to the treasury, which, excluding the expected payment for this year, amounts to 250 billion reais.

Meanwhile, the devaluation of the real could offset the need to comply with the golden rule, and thus delay the schedule of this year's payment to the treasury, the executive said. "We are waiting for the National Treasury to decide whether the preference for return is this year, more towards the end of the year or early 2019," Dyogo added.

As of July 2, US$1 was equivalent to 3.92 Brazilian reais.