Brazilian Development Bank

The National Bank for Economic and Social Development (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%.

Banco Nacional de Desenvolvimento Econômico e Social
TypeGovernment-owned corporation
IndustryFinance and Development
Founded20 June 1952 (20 June 1952)
HeadquartersRio de Janeiro, Brazil
Key people
Aloizio Mercadante (Chairman)
Increase US$ 2 billion (2016)[1]
Total assetsDecrease US$ 272.1 billion (2016)[1]
Number of employees
2,000
ParentGovernment of Brazil
SubsidiariesBNDESPAR
BNDES Ltd.
Agência Especial de Financiamento Industrial
Websitebndes.gov.br
Bank building next to Petrobras headquarters.

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

BNDES 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

The 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
Presidents of BNDES[15]
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

References
  1. "Performance in 2016". BNDES. Retrieved 27 November 2017.
  2. "Ao menos cinco governos estudam vender estatais com apoio do BNDES". www.portaldoholanda.com.br (in Brazilian Portuguese). Retrieved 2023-03-29.
  3. G1, Do; Paulo, em São (2016-11-25). "BNDES publica edital para abrir privatização da Lotex". Negócios (in Brazilian Portuguese). Retrieved 2023-03-29.
  4. "BNDES publica edital para privatizar loteria das "raspadinhas"". Agência Brasil (in Brazilian Portuguese). 2016-11-25. Retrieved 2023-03-29.
  5. Fernando J. Cardim de Carvalho (January 2013). "Relative insulation". D+C Development and Cooperation/ dandc.eu.
  6. "Empresas do Sistema BNDES".
  7. "BNDESPAR CONCENTRATES 89% OF ITS INVESTMENTS IN FIVE INDUSTRIES"
  8. "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
  9. www.bloomberg.com/news/2013-07-03 about Eike Batista's fortune gained with help from BNDES, and BNDES loss.
  10. "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.
  11. ISTOÉ about "BNDES feeding JBS": "BNDES alimenta a JBS - ISTOÉ Dinheiro". Archived from the original on 2014-02-01. Retrieved 2014-01-19.
  12. infomoney.com.br of 2013 July, about BNDES operations with EBX and CCX, OGX, MMX and MPX.
  13. Veja (magazine) about "new GPA", a business in which the BNDES should not be
  14. 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.
  15. https://www.bndes.gov.br/wps/portal/site/home/quem-somos/nossa-historia
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