» Purpose

Modernization of machines and equipment installed in the Country. 

By modernization it should be understood: 

machine or equipment reconstruction and/or recuperation by incorporation of new technologies and/or parts and components that extend their useful life and/or optimize their original performance, generating increased production capacity and productivity to the national economy, and 

conversion of machine or equipment which does not have safety devices for compliance with the labor safety requirements established by the Brazilian Association of Technical Norms [Associação Brasileira de Normas Técnicas - ABNT]. 


» Clients

companies with headquarters and administration within the Country; 

public administration direct or indirect.


» Items Entitled to Financing

Engineering services rendered by Brazilian companies, including parts, pieces and components required for modernization of the machines and equipment. 

The total value of the service contract, including labor, engineering services, parts, pieces and components required for modernization of the machines and equipment shall present a nationalization index of, at least, 60% (sixty per cent). 


» Items Entitled to Financing

The modernization of the following items: railroad transportation equipment, buses, bus chassis and bodies, trucks, tractor-trucks, tractor-trailers, tows, semi-tows, truck chassis and bodies, including dolly semi-tows and similar, security-vans and special equipment adjustable to chassis, such as platforms, cranes, concrete-mixing trucks, garbage-compactors and tanks. 

The modernization or recuperation of machines and equipment directly carried out by its owner or leaseholder. 


» Operational Modalities 

Financial support shall be granted in the following modalities: 

1. FINAME-MODERNIZA BK PROPRIETÁRIO [Owner] - Financing to the Company which owns the machines and equipment subject to modernization; 

2. FINAME-MODERNIZA BK FORNECEDOR [Supplier] - Financing to the company contracted to provide services for the modernization of machines and equipment. 


» Interest Rate

Financial Cost:
As defined in the FINAME product

BNDES Basic Spread:
2.0% p.a. (two per cent per annum).

Financial Intermediation Fee:
0.8% p.a. (eight hundredths per cent per annum). Operations with micro, small and medium-sized companies are exempt from this fee. 

Spread of the Accredited Financial Institution:
To be negotiated between the Financial Agent and the Beneficiary. 


» Share Level  

FINAME-MODERNIZA BK PROPRIETÁRIO: 

For large companies: up to 70% (seventy per cent); 
For micro, small and medium-sized companies: up to 100% (one hundred per cent). 

FINAME-MODERNIZA BK FORNECEDOR: up to 90%. 


» Maturity  

FINAME-MODERNIZA BK PROPRIETÁRIO: Up to 48 (forty eight) months. 

FINAME-MODERNIZA BK FORNECEDOR: Established according to a chronogram defined in the contract to be signed between the provider of capital goods modernization services and the company proprietary of the machines and equipment subject to modernization, added of 30 (thirty) days, and limited to 18 (eighteen) months. 


» Collaterals 

To be negotiated between the accredited financial institution and the client. 

The Fund of Guarantee for the Promotion of Competitiveness [Fundo de Garantia para Promoção de Competitividade - FGPC] cannot be used to guarantee operations under the scope of the Program.

See: Guarantees


» Special Conditions 

Regardless of the operational modality, the operations should be submitted accompanied by copies of: 

1. Technical evaluation of the machine or equipment to be modernized or recuperated, including, at BNDES' discretion, serial number, photo with date and copy of the invoice for the purchase of the machine or equipment, signed by a qualified professional, duly identified; 

2. Technical-commercial proposal, including the presentation of the value estimated for the execution of the services, including parts, pieces and components and defining the scope of the modernization, with the "Acceptance" of services by the contractor, duly identified, and 

3. Contract for the Rendering of Services for modernization and reform of the machine or equipment, when this has already been signed when the financing proposal is submitted to BNDES. 


» Effectiveness

Until 12/31/2008, respecting budget limits.


» Addressing

Please apply to the accredited financial institution with the technical specifications of the good to be financed. The institution will inform which documentation is necessary, evaluate the possibility to grant the credit and negotiate the guarantees. After approval by the institution, the operation shall be submitted for homologation and later fund release by BNDES.