Project finance: BNDES defends its role with credit
Development bank does not want to grow credit book; Bonds expected to take bigger role in project finance
Brazilian development bank BNDES claims that its role in the economy is not adding to the increasing debt of the country and that the bank is not becoming, or aiming to become, a more dominant supplier of credit.
In a speech to a Project Finance Magazine conference in São Paulo, Nelson Siffert, deputy managing director of infrastructure at BNDES, appeared to be reacting to recent criticism of BNDES’s role in the development of the Brazilian economy when he said that the bank was a consistent provider of about 20% of credit in the market. He said that while this figure rose anti-cyclically as private credit withdrew from the market, BNDES targets a consistent market share of 20% throughout the cycle.
Volumes of lending (expected to be R$140 billion [$81.7