Brazilian Development Bank
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The National Bank for Economic and Social Development or NBESD (Portuguese: Banco Nacional de Desenvolvimento Econômico e Social, abbreviated: BNDES)[2][3][4] is a development bank structured as a federal public company associated with the Ministry of the Economy of Brazil. The stated goal is to provide long-term financing for endeavors that contribute to the country's development. BNDES is one of the largest development banks in the world (after the Chinese Development Bank, which boasts assets of around RMB 7.52 trillion, or around $1.2 tn). Its non-performing loan ratio is also less favorable (2.2%) compared to the CDB's that stands below 1%.
 | |
 BNDES Building | |
| Company type | Government-owned corporation |
|---|---|
| Industry | Finance and Development |
| Founded | 20 June 1952 |
| Headquarters | Rio de Janeiro, Brazil |
Key people | Aloizio Mercadante (Chairman) |
 US$ 2 billion (2016)[1] | |
| Total assets |  US$ 272.1 billion (2016)[1] |
Number of employees | 2,000 |
| Parent | Government of Brazil |
| Subsidiaries | BNDESPAR BNDES Ltd. Agência Especial de Financiamento Industrial |
| Website | bndes.gov.br |
Among the objectives of BNDES are the strengthening of the capital structure of private companies, the development of capital markets, the trading of machines and equipment and the financing of exports.
Since its establishment on June 20, 1952, BNDES has financed large-scale industrial and infrastructure endeavors and has played a significant role in the support of investments in agriculture, commerce, and the service industry, as well as in small- and medium-sized private businesses, even though its focus lies on larger firms.[5] The bank has supported social investments aimed at education and health, family agriculture, basic sanitation and mass transportation.
The bank offers financial support lines and programs to companies of any size and sector that have been set up in the country. The partnership with financial institutions with agencies established around the country facilitates the dissemination of credit, enabling greater access to BNDES's financial services.
BNDES has three integral subsidiaries: FINAME, BNDESPAR, and BNDES Limited. Together, the three companies comprise the BNDES System.[6]
Criticism and controversies
editBNDES has been accused of operating with larger firms in a corrupt manner[7][8][9] and giving help to big corporations instead of small and medium-sized private businesses.
Operating with statutes of "ethical and environmental principles", in 2012, BNDES approved a 22.5 billion real loan for the construction of the Belo Monte Dam, a project that displaced local communities. The plan was strongly criticized by environmental groups and indigenous populations.[10]
In 2013, ~90% of BNDESPAR investments concentrates in five industries.[7] In recent BNDES investments, lobby irregularities and conflict of interest arrives with JBS S.A.[8][11] OGX/EBX Group,[12] GPA (company),[13] and others.
The bank has been criticized for supporting the international expansion of some private firms.[5]
Economists around the world recognize that Brazil has its own development bank, a key financial organization, bigger than the World Bank. As the Nobel Prize economist J. Stiglitz opinion, "... the BNDES is a huge development bank (...) People don’t realize this, but Brazil has actually shown how a single country can create a very effective development bank (...) that actually promotes real development without all the conditionality and all the trappings around the old institutions".[14] Despite the recognition of financial volume, effective infrastructure and organization, the bank is used by only a few industries. The concentration of financial volume in few and perhaps questionable industries contradicts the bank's development and diffusion goals. The concentration contrasts greatly with Brazilian's per capita income and its many small and medium-sized enterprises.
Leadership
editThe president of BNDES oversees both subsidiaries of the BNDES group: FINAME and BNDESPAR. Together, the three companies comprise the BNDES System. The BNDES President is appointed by the President of Brazil.
Presidents
edit| Name | Dates |
|---|---|
| Ary Frederico Torres | July 1952 - June 1953 |
| Válder Lima Sarmanho | June 1953 - February 1955 |
| Glycon de Paiva Teixeira | March 1955 - February 1956 |
| Lucas Lopes | February 1956 - June 1958 |
| Roberto de Oliveira Campos | August 1958 - July 1959 |
| Lucio Martins Meira | July 1959 - February 1961 |
| José Vicente de Faria Lima | February 1961 - September 1961 |
| Leocádio de Almeida Antunes | September 1961 - June 1963 |
| José Garrido Torres | July 1964 - March 1967 |
| Jayme Magrassi de Sá | March 1967 - October 1970 |
| Marcos Pereira Vianna | October 1970 - March 1979 |
| Luiz Antonio Sande de Oliveira | March 1979 - September 1983 |
| Jorge Lins Freire | September 1983 - October 1984 |
| José Carlos Perdigão Medeiros da Fonseca | October 1984 - March 1985 |
| Dilson Domingos Funaro | March 1985 - August 1985 |
| André Franco Montoro Filho | August 1985 - January 1987 |
| Márcio João de Andrade Fortes | January 1987 - September 1989 |
| Ney Fontes de Melo Távora | October 1989 - March 1990 |
| Eduardo Marco Modiano | March 1990 - October 1992 |
| Antonio Barros de Castro | October 1992 - March 1993 |
| Luiz Carlos Delben Leite | March 1993 - August 1993 |
| Pérsio Arida | September 1993 - January 1995 |
| Edmar Lisboa Bacha | January 1995 - November 1995 |
| Luiz Carlos Mendonça de Barros | November 1995 - April 1998 |
| André Pinheiro de Lara Resende | April 1998 - November 1998 |
| José Pio Borges de Castro Filho | November 1998 - July 1999 |
| Andrea Sandro Calabi | July 1999 - February 2000 |
| Francisco Roberto André Gros | February 2000 - January 2002 |
| Eleazar de Carvalho Filho | January 2002 - January 2003 |
| Carlos Lessa | January 2003 - November 2004 |
| Guido Mantega | November 2004 - March 2006 |
| Demian Fiocca | March 2006 - May 2007 |
| Luciano Coutinho | May 2007 - May 2016 |
| Maria Silvia Bastos Marques | June 2016 - May 2017 |
| Paulo Rabello de Castro | June 2017 - March 2018 |
| Dyogo Oliveira | April 2018 - December 2018 |
| Joaquim Levy | January 2019 - June 2019 |
| Gustavo Montezano | July 2019 - December 2022 |
| Aloizio Mercadante | December 2022 - present |
See also
editExternal links
edit
References
edit- ^ a b "Performance in 2016". BNDES. Retrieved 27 November 2017.
- ^ "Ao menos cinco governos estudam vender estatais com apoio do BNDES". www.portaldoholanda.com.br (in Brazilian Portuguese). Retrieved 2023-03-29.
- ^ G1, Do; Paulo, em São (2016-11-25). "BNDES publica edital para abrir privatização da Lotex". Negócios (in Brazilian Portuguese). Retrieved 2023-03-29.
{{cite web}}: CS1 maint: numeric names: authors list (link) - ^ "BNDES publica edital para privatizar loteria das "raspadinhas"". Agência Brasil (in Brazilian Portuguese). 2016-11-25. Retrieved 2023-03-29.
- ^ a b Fernando J. Cardim de Carvalho (January 2013). "Relative insulation". D+C Development and Cooperation/ dandc.eu.
- ^ "Empresas do Sistema BNDES". Retrieved 25 February 2024.
- ^ a b Silva, Maurício Jayme E. (18 March 2013). "Direito e Infraestrutura: Infrastructure: BNDES concentrates 89& of its investments in five industries; three relate to the Brazilian infrastructure". Retrieved 25 February 2024.
- ^ a b "BNDES $7.5 billion bet on Friboi", O Estado de S. Paulo, February 15, 2010, www.estadao.com.br/noticias Archived September 2, 2013, at the Wayback Machine
- ^ www.bloomberg.com/news/2013-07-03 about Eike Batista's fortune gained with help from BNDES, and BNDES loss.
- ^ "Brazil's BNDES approves $10.8 bln loan for Amazon Belo Monte dam". Reuters. November 26, 2012. Archived from the original on 26 July 2014. Retrieved 17 July 2014.
- ^ ISTOÉ about "BNDES feeding JBS": "BNDES alimenta a JBS - ISTOÉ Dinheiro". Archived from the original on 2014-02-01. Retrieved 2014-01-19.
- ^ infomoney.com.br of 2013 July, about BNDES operations with EBX and CCX, OGX, MMX and MPX.
- ^ Veja (magazine) about "new GPA", a business in which the BNDES should not be
- ^ Goodman, Amy; González, Juan. "Nobel Economist Joseph Stiglitz Hails New BRICS Bank Challenging U.S.-Dominated World Bank & IMF". www.democracynow.org/2014/7/17/nobel_economist_joseph_stiglitz_hails_new. Retrieved 26 July 2014.
- ^ "Nossa história - BNDES". Retrieved 25 February 2024.