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Brazil's BNDES chief says company interest in loans up 30 pct
November 16, 2012 / 9:26 PM / in 5 years

Brazil's BNDES chief says company interest in loans up 30 pct

NEW YORK, Nov 16 (Reuters) - Company inquiries about tapping Brazil’s BNDES state development bank for loans is up 30 percent the past two months, a strong sign of potential growth in the near future for a sluggish economy, the bank’s president said on Friday.

BNDES, the country’s largest source of long-term corporate credit is likely to disburse 150 billion reais ($72 billion) of new loans this year, up from 139.7 billion reais in 2011, BNDES President Luciano Coutinho told reporters at the Americas Society in New York.

“It depends on how much demand increases in November and December. It usually is seasonally strong, but this time it seems stronger,” said Coutinho. “We also foresee the current demand for capital goods is increasing,” he said.

Pre-approval for loans is up about 20 percent from a year ago, a good sign for economic growth in Brazil, but roughly one-fifth of pre-approvals go no further, Coutinho said.

Economic growth is expected to accelerate in Brazil in 2013 to 4 percent from about 1.5 percent this year, according to a weekly central bank survey of economists published on Monday.

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