Analysis

Long-term funding

How to invest in Brazil

In recent years the incentive policies of the Brazilian economic development agencies have sought greater efficiency in the financing of projects. In 2016, financing of resources for the economy's large business segments totaled R$ 88.2 billion

Of this total, R$ 30.1 billion was to industry, while R$ 25.9 to infrastructure. For the trade and service sector was destined to R$ 13.8 billion and to agriculture R$ 13.8 billion

Development banks

  • National Economic and Social Development Bank (BNDES): operates nationwide and is considered the main source of long-term funding;
  • Development Bank of Minas Gerais (BDMG): operates exclusively in the state of Minas Gerais, Southeast of Brazil;
  • Southern Regional Development Bank (BRDE): operates in all three Southern states of Brazil.

Constitutional funds

With funds from the National Treasury, these are managed by three banks which provide funding to projects located in the North, Northeast, Midwest and in some cities in the states of Minas Gerais and Espírito Santo (SUDENE region):

  • North Constitutional Fund (FNO): operated by Banco da Amazônia;
  • Northeast Constitutional Fund (FNE): operated by Banco do Nordeste;
  • Midwest Constitutional Fund (FCO): operated by Banco do Brasil.

 

Development funds

These funds are managed by federal banks which provide resources to projects located in the same region of the constitutional funds, but focused on structuring projects with large capacity for new business and new productive activities.

  • Northeast Development Fund (FDNE);
  • Amazon Development Fund (FDA);
  • Center-West Development Fund (FDCO);
  • Development Fund (FDA);
  • Center-West Development Fund (FDCO).

 

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