Rio, April 20, 2004 (Agência Brasil) - The National Economic and Social Development Bank (BNDES) approved the Program for the Modernization of the Truck Fleet (Modercarga) in Brazil. The program, which is intended to renovate the national truck fleet, will get begin with resources worth US$ 685 billion (R$ 2 billion), for one year. The BNDES hopes the program will get underway in a month.

The program will finance the purchase of trucks, tractors, trailers, chassis, and bodies, new or up to seven years old. The Modercarga will benefit independent truckers, as well as micro, small and medium-sized shipping companies. The credit will cover up to 70% of the value of the vehicle, with annual interest rates of 17%.

Data from a study conducted by the National Transport Confederation (CNT) indicated that, in 2002, Brazil's truck fleet was 18 years old, on the average. At that time Brazil had around 1.1 million trucks in circulation. In 2003 the country produced 78.9 thousand trucks, 12.8 thousand of which were exported.

Translator: David Silberstein