IDB loan to support micro, small & medium-sized enterprises

24 Apr '07

2 min read

BNDES channels a large portion of indirect loan (onlending) operations to enterprises. Microenterprises, those that have 19 or fewer employees and annual gross sales of $400,000 or less, and the formal small and medium-sized enterprise sector, composed of firms having between 20 and 499 employees and gross annual sales of under $20 million, are key for the entire economy because of their role in industrial modernization and re-engineering of production processes.

The IDB has also supported four very successful multisector credit programs with BNDES since 1995 for a total of $3.5 billion. BNDES, the only significant source of medium- and long-term funding for financial intermediaries, has a strategic role in Brazil in increasing the volume of credit in the economy.

The loan is for a 20-year term with a four-year grace period and follows the IDB strategy agreed with Brazilian authorities in the context of the country´s 2004-2007 Economic Plan to achieve sustained, socially inclusive growth. Local counterpart funds also total US$1 billion.

Inter-American Development Bank

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