Finame, a funding line for capital goods, disbursed R$ 11 billion in the first seven months of 2017, a 10% increase
The BNDES Progeren working capital line has grown 360% and reached R$ 4 billion in releases this year
Approvals for Infrastructure have grown 27% in 2017
Credit demand for investment increases in consultations of segments such as Chemistry and Petrochemistry (61%) and Mechanics (37%)
The BNDES disbursements for financing machinery and equipment accelerated in July, resulting in a 10% increase in disbursements from Finame, a line of credit for capital goods, in the first seven months of the year. R$11 billion was released in this line between January and July through more than 38.5 thousand operations.Finame disbursed R$2.3 billion in July alone, which represented an increase of almost 90% over the same month last year.
Monthly disbursements of Finame have been accelerating since May, when their first growth (11%) since September 2014 was reported in comparison with the same month in the previous year. Finame’s disbursements In June rose 28% in comparison with June last year. The 90% increase in July confirms the acceleration trend.
Finame approved another R$ 12.6 billion In July, 35% above the R$ 9.3 billion recorded in the same period for 2016. The Finame approvals reflect the short-term investments about to join in the economy, since the contracting and disbursement occur on average in less than two weeks.
Working capital – The financing line of BNDES Progeren working capital reached the R$ 4 billion mark in disbursements this year, a 360% increase over the same period last year. In 12 months the line, which was created to supply the lack of short-term capital of enterprises, disbursed R$ 5.8 billion, helping to preserve jobs and activities amid the adverse economic scenario. This amount is 224% higher than the value loaned in the immediately preceding period (between August 2015 and July 2016).
Aggregated data – BNDES disbursements in the first seven months of this year totaled R$ 40.2 billion. Still reflecting the economic framework of low demand for investments credit in the last two years, the result represents a 17% retreat in relation to the value registered in the same period in 2016. BNDES disbursed R$ 6.7 billion in July alone, a 21% reduction compared with the same month for 2016.
It is noteworthy that the disbursements reflect past demands, since the procedures of applications of direct financing to BNDES, presented as inquiries, can take more than a year in the stages of eligibility, approval and contracting. The signs of recovery of economic activity in the country amid the reduction of market expectations for interest rates at the end of this and next year, with inflation under control, influence the investment decision. With this, the gradual recovery of demand for the BNDES resources by the end of the year is expected.
In this sense, less retreats in consultations (-12%), which act as the best thermometer of investment intentions for the initial stage of the procedures of applications of direct financing to BNDES, may be noted in comparison with the stages of eligibility (-14%), approvals (-18%) and disbursements (-17%). Agriculture stands out with consultations in the total value of R$ 9.6 billion from the beginning of this year up until July, a 15% increase in comparison with the same period of the previous year. The demand for investment credit is even stronger in the consultations of the Chemistry and Petrochemistry (61%) and Mechanics (37%) industrial segments.
MSMEs – Most loans released by Finame and BNDES Progeren were intended for micro, small and medium-sized enterprises (MSME). In the capital goods line, 61.1% of the total disbursed was intended for this segment. In the working capital line such participation reached 84.2%. The performance of the two lines, which have their respective credits transferred by financial agents in indirect operations, contributed to the maintenance of the significant participation of MSMEs in the total disbursement of BNDES. Of everything that was loaned by the Bank in the first seven months of 2017, 40% was intended for this segment, reflecting a series of initiatives to increase the capillarity of credit such as the creation of the MSME Developer Channel.
In the regional distribution, the amount of resources released by BNDES for projects in the Midwest and Northeast regions increased by 16% and 15%, respectively. The decline in disbursements was concentrated in the Southeast (-32%), South (-20%), and North (-12%) regions.
Among the sectors, Agriculture was the only one with expansion in disbursements, accounting for 6%. The amount of R$ 8.1 billion was released in the first seven months of the year, reflecting the agricultural programs of the Federal Government, and the demand for investments generated by the record harvest. In the same period, releases for Infrastructure decreased 5% in comparison with the period from January to July in 2016, but the sectors of Telecommunications (88%) and Electricity (51%) have substantially expanded. Trade and Services and Industry had the most severe declines: 17% and 41%, respectively.
Approvals for Infrastructure – The Infrastructure sector was the highlight of approvals from BNDES, with a 27% increase between January and July compared with the same period in 2016. A total of R$16.4 billion was approved this year. The greatest influence was the Electricity segment, which got slightly more than R$ 10 billion in approved projects, a 173% increase in the same comparison. The indicator of approvals anticipates the investments that are yet to join in the economy, since the disbursements are made only after the stage of contracting of the loan, and over the development of the projects.