Curitiba, July 26, 2004 (Agência Brasil - ABr) - On Friday (23), the Minister of Development, Industry, and Foreign Trade, Luiz Fernando Furlan, told a group of entrepreneurs attending the XIV Brazilian Congress of the Confederation of Commercial and Entrepreneurial Associations of Brazil, in Curitiba, in the southern part of the country, that Brazil's exports should increase 50% over the next two years. According to Furlan, this year alone the total should rise from last year's US$ 60 billion to around US$ 90 billion.

In the Minister's view, the world market still offers considerable space. He told his business audience that many people are unaware of Brazil's industrial potential. He pointed out, for example, that the country is the world's largest producer of electronic games for cell phones. "The figures leave us optimistic that this year's economic growth will surpass the 4% forecast."

The Minister justified his optimism by recalling that, in the sphere of loans, a critical factor for small firms, data from the National Economic and Social Development Bank (BNDES) for the first half of this year indicate a 46% growth in the supply of credit for small and medium-sized companies, in comparison with last year, for a total of US$ 1.8 billion (R$ 5.6 billion). According to him, various forms of credit are being launched for firms to modernize themselves.

Furlan referred to the creation of the Machinery Modernization Program (Modermaq), which will finance 90% of a company's equipment expenses, with a five-year repayment period and a fixed annual interest rate of 13.95%, a little more than 1% monthly. According to the Minister, the government has US$ 813 thousand (R$ 2.5 million) available for this program at the outset.

Reporter: Lúcia Nórcio
Translator: David Silberstein