Brazil creates line of credit for exporters of machinery to Latin America

Best Growth Stock – The National Bank of economic and Social Development (Bndes), the institution of the Government of Brazil-building, today announced the creation of a line of credit to support exports of machinery of this country to Latin America.

The credit line will have a limit of $200 million, a return of five-year term and will be focused mainly on the markets of Argentina, Chile and Paraguay, according to a release.

The measure should primarily help boost exports of machinery and agricultural tools, industrial machines, buses and trucks, telecommunications equipment, generators and transformers.

Disbursements will be carried out in real, directly to Brazilian exporters, through the network of offices of the State Bank do Brazil both in their country of origin and in Santiago, Chile and AsunciĆ³n.

Argentina, the brokerage will perform through the branches of Banco Patagonia, which owned 51% by Bank do Brazil.

The new credit line will contribute to the reduction of “risks of commercial and political nature” to allow the Brazilian exporters to charge in advance for its sales in the neighboring countries, according to the statement.

Brazilian exports of capital goods were one of the sectors most affected by the international crisis triggered in 2008, which still have yet to recover fully.

The manufactured represent 39% of Brazilian exports, while sales to Latin America this percentage rises to 79%.

Brazilian companies checked $8.187 billion in 2010 for the export of machines and equipment throughout the world, according to official statistics.