BNDES - Brazilian Development Bank
   




Social clause

Since February 2008, BNDES financing contracts have included the so-called Social Clause, which clarifies the fight against discrimination of race or gender, child labor and slave labor in Brazil. To respect social clauses was already a prerequisite for contracting financing in the Bank. However, from then on, the veto to practices of discrimination has been explicitly integrated into BNDES’s contracts. Actions proven to be unlawful may result in the suspension or early maturity of the contract.

The initiative resulted from demands of the civil society and from the dialogue with social movements, which advocated a sharper posture from BNDES regarding repudiation of slave labor, child labor and any form of discrimination, including race and gender. With the Social Clause, BNDES can act with greater speed and accuracy to curb any criminal practices in projects funded by it. In other words, when noting non-compliance with the legislation that deals with fighting against discrimination of race or gender, child labor and slave labor, BNDES can transparently and more rapidly suspend or require early maturity of the financing agreement, requiring immediate payment of the disbursements made.

This shows that the achievement of social rights is crucial in the process of granting financing from BNDES, with the same relevance of the financial and economic demands made to the institution’s clients. Thus, BNDES perfects its legal instruments of action to more effectively meet the Government’s social policies priorities.

In addition to the strictly legal aspects, by clarifying illicit actions in its contracts, the Bank also reinforces the instruments of control of government agencies and organized civil society, which now have a mechanism to oversee and investigate accusations. In this way, BNDES expects to expand the integrated action of all by monitoring possible non-compliances of social rights.


 



Recent News  Recent News
07/25/2019
BNDES disburses R$ 25 billion in the first semester
Disbursements for infrastructure accounted for 45.5%, totaling R$ 11.4 billion. The electric power and transportation sectors were the highlight among disbursements Micro, small and medium-sized enterprises were the destination of more than 96% of financing operations and received R$ 11.5 billion, 45.6% of the releases. Investments in the North region increased by 108%, reaching R$ 1.6 billion. Disbursements in the South region increased by 10% and reached R$ 7 billion
10/30/2019
BNDES disburses R$ 38 billion between January and September
Micro, small and medium-sized enterprises accounted for 97.5% of operations and 50.7% of the total disbursed in the period, the highest percentage share since 1995 The infrastructure sector stands out with 45.6% of the disbursement volume