Brazil’s state development bank BNDES has approved BRL1.6bn ($300mn) in loans to help exporters affected by the US tariff hikes introduced in August, the bank said, Xinhua reported.
The funding comes under President Luiz Inácio Lula da Silva’s Sovereign Brazil Plan, aimed at diversifying trade and reducing reliance on the US market.
The measure follows US President Donald Trump’s 50% tariff on Brazilian exports, covering nearly 3,800 items, though some sectors — including orange juice and aircraft — were exempted.
In this initial phase, BNDES cleared 47 loan applications through its Giro Diversificação credit line to support companies targeting new export destinations.
Largest allocations went to food and manufacturing sectors, including sugar (BRL220mn), electrical equipment (BRL191.1mn) and coffee (BRL108.9mn).
The loans will back exports to markets such as Switzerland, the UK, Canada and neighbouring Latin American countries.
BNDES President Aloizio Mercadante said 66 additional credit requests, totalling BRL2bn, are under review.
“Brazil has the capacity to adapt quickly, and BNDES’s role is to ensure that no viable company is left without support in this process,” he said.
Related Articles
Brazil confronts bank failure
Brazil’s Central Bank chief Gabriel Galípolo said that banks “are fallible institutions”, addressing the liquidation of Banco Master and the fraud case linked to its ... more
Brazil shuts Banco Master amid fraud probe
Brazil’s government closed Banco Master after a federal police investigation uncovered large-scale fraud, the Central Bank said. ... ... more
Brazil’s Nubank fires staff over alleged sabotage plot
Brazilian digital bank Nubank dismissed two employees for just cause after detecting an alleged plan to sabotage its internal systems, according to an internal ... more
Most Read
-
India’s smart metering push gains momentum
4 months ago
-
The birth of a Kazakh banking empire: ATF Bank
3 years ago