(Adds comment by bank official)
RIO DE JANEIRO, March 27 Loan disbursements at
Brazil's state development bank BNDES, the largest
source of long-term corporate credit in the country, surged 35
percent in the first two months of this year, according to a
statement on Thursday.
The bank, however, expects declining loan requests and
commitments to allow it to slow the pace of disbursements this
BNDES lent 28.5 billion reais ($12.6 billion) in January and
February, the statement said.
According to BNDES superintendent of planning, Claudio Leal,
this increase in disbursements was due to a surge in requests at
the end of 2013 after the government said terms for loans would
become more costly.
"This 35 percent growth in disbursements does not point to
the tendency for this year. It is too early to extrapolate
conclusions based on two months with atypical movements and
events that will not be repeated," he said.
Leal cited as examples loans for infrastructure projects
such as the upgrade of Viracopos airport in Campinas and the Rio
de Janeiro subway.
The BNDES has been criticized by some business sectors for
overcrowding the local credit market with its enlarged presence
in recent years, a process that began when private lending dried
in the 2008-2009 global financial crisis.
(Reporting by Rodrigo Viga Gaier; Writing by Guillermo
Parra-Bernal, Editing by Franklin Paul and Richard Chang)