The BNDES operating performance in the first four months confirms the signs of economic recovery with increase in credit approvals for the industrial sector and for the acquisition of machinery and equipment. BNDES FINAME, financing line of capital goods, accumulated R$ 6.7 billion in approvals between January and April, an increase of 38% over the same period last year. In April alone BNDES FINAME approved R$ 2.1 billion in credit, 50% more than in the same month of 2016.
Apart from agricultural machinery and buses and trucks, the credit approvals for other capital goods increased 159% in the first four months of the year, also in comparison with the same period last year. The operations approved in this segment totaled almost R$ 2.3 billion in the first four-month period of 2017.
Among the applicant sectors, the Processing Industry totaled R$ 1.4 billion in loans from BNDES FINAME approved between January and April. The value is almost three times higher than the R$ 468.8 million registered in the first four months of last year. The increase of 197% was the most expressive, but there was also an increase of 31% for projects of Infrastructure, Trade and Services. Agriculture had R$ 2.6 billion approved by BNDES FINAME, 12% more than in the first four-month period of last year, mostly for the acquisition of agricultural machinery. Only the Extractive Industry decreased 49% in this indicator.
The BNDES FINAME approvals are a thermometer of the short-term investments that will be made in the economy since they tend to become disbursements quickly: the average is less than two weeks. The operations of this line are indirect with the credit of BNDES transferred through accredited banks, which are responsible for the analysis and the risk of the contracts. The increase in approvals in this line suggests a resumption of companies’ occupation of the installed capacity through the modernization of machinery. The total credit disbursed by BNDES FINAME in 2017 added up R$ 5.5 billion by April, still 10% below that registered in the first four months of last year.
Aggregated data – The industry stood out with an increase of 34% in the approvals of the first four-month period of 2017, adding up R$ 4.6 billion, considering the global data of the Bank. The total approved by BNDES in the first four months of the year was R$ 18.2 billion, showing stability compared to the same period of 2016. The indicators of approvals anticipate the investments that will join in the economy, since the disbursements are made only after the signing of the loan, during the development of the projects.
The other operational indicators of BNDES keep reflecting the economic context of the country’s slow and gradual recovery, which is not evenly distributed among the sectors. In the first four-month period, the Bank registered R$ 27.5 billion in inquiries and R$ 24.6 billion in eligibilities. The figures meant the decrease of 27% and 22%, respectively, compared to the same period of 2016. However, there was expressive increase in inquiries of relevant sectors, such as Pulp and Paper (370%), Mechanics (192%), Chemicals and Petrochemicals (136%), Food and Beverages (52%) and Textile and Clothing (39%).
Among the eligibilities, stage in which the financing requests are forwarded for analysis in the BNDES operational areas, the sectors of Mechanics, Pulp and Paper and Food and Beverage also stood out with strong increases: 541%, 321% and 70%, respectively.
Disbursements – BNDES disbursements still reflect the recessive framework of recent years, registering a decrease of 15% in the first quadrimester of this year compared to the same period last year. In the first four months of the year BNDES disbursed R$ 21.4 billion. In April alone, the Bank disbursed R$ 6.3 billion, a decrease of 11% compared to the same month of the previous year.
Since the second half of last year there has been a reduction in the declining rhythm of BNDES disbursements. In the first half of 2016, releases decreased 42% compared to the same period of the previous year. The second half showed milder decrease, 28%, also in relation to the same period of 2015. Now, the 15% decrease in the first four months of 2017 maintains the trend of decline.
In the regional sector, the decrease in BNDES disbursements in the first four-month period was concentrated in the South (-31%) and Southeast (-27%). In the Midwest, North and Northeast regions there was expressive increase in the releases: 36%, 32% and 14%, respectively.
It is important to observe that the disbursements are a portrait of the past, since the direct financing applications to BNDES presented as inquiries can take more than a year in the stages of eligibility, approval and contraction until they become disbursement. Thus, comparisons between inquiries and disbursements are not appropriate in the same period, for example.
Infrastructure – The largest portion of the disbursements from the first four-month period went to infrastructure, which accounted for nearly 37% of the total with R$ 7.9 billion released. Despite the decrease of 9% compared to the same period in 2016, infrastructure segments had strong expansion. With a concentration of investments in modernization of networks, the telecommunication sector continues with high releases since the beginning of the year, accumulating R$ 703 million between January and April. The figure represents an increase of 504% disbursed in the same period last year. Rail Transport and Electric Power also stood out with increase of 106% and 40%, respectively, in the same comparison. The Trade and Services sector was left with little more than 22% of the resources released by BNDES in the first four-month period, adding up to R$ 4.7 billion. Farming and Cattle Raising stayed with R$ 4.3 billion, equivalent to 20% of total disbursements. The Industry share stayed with nearly 21%, adding up R$ 4.5 billion.
Working capital and MSME – Still as a result of the recent economic situation, the BNDES PROGEREN line continued standing out in BNDES disbursements in the first four-month period of 2017. The line, created to provide working capital for companies to go through the crisis preserving activities and jobs, disbursed R$ 2.2 billion between January and April. The amount is 339% higher than that released in the same period last year. In 12 months, the BNDES PROGEREN line adds up R$ 4.4 billion lent in more than 10,000 operations, an increase of 147% compared to the twelve months immediately prior.
Another highlight of the first quadrimester was the increase in releases for Innovation projects, which totaled almost R$ 700 million between January and April this year. Compared to the same period last year, the increase was 13%.
Between January and April this year, micro, small and medium-sized enterprises (MSME) were left with little more than 38% of everything that BNDES disbursed, the equivalent of R$ 8.2 billion. The amount is 13% less than that paid to this segment in the same period last year, a result mainly influenced by the 35% decrease among micro-sized enterprises. There was a much milder setback among small companies of 1% and increase of 25% among the medium-sized ones. The releases for major companies decreased 16% compared to the first four-month period of 2016, adding up R$ 13.2 billion between January and April this year.