Rio, January 16, 2004 (Agência Brasil - ABr) - Despite the issue involving the AES multinational corporation, the National Economic and Social Development Bank (BNDES) should end the 2003 fiscal year with profits superior to the R$ 550 million earned in 2002, according to an estimate made yesterday (15) in this capital by the vice-president of the institution, Darc Costa.

Since the BNDES's 2003 balance sheet has still not been closed, and in light of the agreement signed with AES, which controls Eletropaulo, Costa explained that the company cannot be considered a bad debtor. He added that the provision of approximately US$ 1.2 billion, set aside to cover the company's debt to the bank, has been returned. The bank is waiting for AES to pay an installment of US$ 90 million by January 31, as stipulated in the agreement which established a new enterprise, Brasiliana Energy, whose capital is divided between the BNDES and AES.

Another bad debt provision, on the order of US$ 700 million, concerns Cemig, but it is expected that this will be settled at the proper time. This debt involves the privatization process, which Costa considers incomplete and "very poorly executed," in that the objective was to generate cash flow and not resolve companies' problems. The topic will be the theme of a future meeting of the BNDES's executive board. (DAS)