Bank offers loans to companies to create jobs and income

02/09/2004 - 21h13

Rio - The National Economic and Social Development Bank (BNDES) informed in Rio de Janeiro that the institution's Program to Strengthen Employment and Income Generation Capacity, announced by the Minister of Development, Luiz Fernando Furlan, is already available to Brazilian companies of all sizes to finance working capital. The duration of the operations will be 24 months, including a 12-month grace period and 12 months for repayment, for all companies interested in participating in the program.

According to the BNDES, medium and large firms, with projects calling for resources greater than US$ 3.4 million (R$ 10 million), will receive credit directly from the Bank, up to a US$ 34.1 million (R$ 100 million) limit. The project should contain a plan for creating openings on the job market. The interest rate will be reduced as the agreed-upon employment target is met.

For micro and small companies, the loans will be limited to US$ 34.1 thousand (R$ 100 thousand) and US$ 170 thousand (R$ 500 thousand), respectively. Unlike the larger firms, these companies will not be required to present a job creation plan, since they are acknowledged to be generators of employment and income in the country.

Agência Brasil
Reporter: Alana Gandra
Translator: David Silberstein
09/03/2004