The National Bank for Economic and Social Development ( pt, Banco Nacional de Desenvolvimento Econômico e Social, abbreviated: BNDES) is a development bank structured as a federal public company associated with the

Ministry of the Economy A ministry of economy, ministry of commerce, ministry of economic affairs or department of commerce is a part of the government in most countries that is responsible for matters related to the economy or economic policy. List Examples of such mini ...

of Brazil. The stated goal is to provide long-term financing for endeavors that contribute to the country's development. BNDES is one of the largest development banks in the world (after the Chinese Development Bank, which boasts assets of around RMB 7.52 trillion, or around $1.2 tn). Its non-performing loan ratio is also less favorable (2.2%) compared to the CDB's that stands below 1%. Among the objectives of BNDES are the strengthening of the capital structure of private companies, the development of capital markets, the trading of machines and equipment and the financing of exports. Since its establishment on June 20, 1952, BNDES has financed large-scale industrial and infrastructure endeavors and has played a significant role in the support of investments in agriculture, commerce, and the service industry, as well as in small- and medium-sized private businesses, even though its focus lies on larger firms. The bank has supported social investments aimed at education and health, family agriculture, basic sanitation and mass transportation. The bank offers financial support lines and programs to companies of any size and sector that have been set up in the country. The partnership with financial institutions with agencies established around the country facilitates the dissemination of credit, enabling greater access to BNDES's financial services. BNDES has three integral subsidiaries: FINAME, BNDESPAR, and BNDES Limited. Together, the three companies comprise the BNDES System.

Criticism and controversies

BNDES has been accused of operating with larger firms in a corrupt manner"BNDESPAR CONCENTRATES 89% OF ITS INVESTMENTS IN FIVE INDUSTRIES"
/ref>"BNDES $7.5 billion bet on Friboi",

O Estado de S. Paulo ''O Estado de S. Paulo'' (; ), also known as ''Estadão'' (; ), is a daily newspaper published in São Paulo, Brazil. It is the third largest newspaper in Brazil, and its format changed from broadsheet to berliner on October 17, 2021. It has t ...

, February 15, 2010
www.estadao.com.br/noticias
and giving help to big corporations instead of small and medium-sized private businesses. Operating with statutes of "ethical and environmental principles", in 2012, BNDES approved a 22.5 billion real loan for the construction of the

Belo Monte Dam The Belo Monte Dam (''formerly known as'' Kararaô) is a hydroelectric dam complex on the northern part of the Xingu River in the state of Pará, Brazil. After its completion, with the installation of its 18th turbine, in November 2019, the ins ...

, a project that displaced local communities. The plan was strongly criticized by environmental groups and indigenous populations. In 2013 ~90% of BNDESPAR investments concentrates in five industries. In recent BNDES investments, lobby irregularities and conflict of interest arrives with

JBS S.A. JBS S.A. is a Brazilian company that is the largest meat processing company (by sales) in the world, producing factory processed beef, chicken and pork, and also selling by-products from the processing of these meats. It is headquartered in São ...

ISTOÉ about "BNDES feeding JBS":

OGX OGX or .ogx may refer to: * Dommo Energia, formerly OGX, a Brazilian oil and natural gas company that is controlled by the conglomerate EBX Group * .ogx, an audio/video file format, see Ogg * OGX-011, or custirsen sodium, an anti-cancer drug * Ain ...

EBX Group EBX Group is a conglomerate that comprises six companies listed in BOVESPA’s Novo Mercado, including: OGX, MMX, OSX, and CCX, founded and formerly controlled by Brazilian businessman Eike Batista, the chairman of the EBX Group, who was, in 2018 ...

, GPA (company), Veja (magazine) abou
"new GPA", a business in which the BNDES should not be
/ref> and others. The bank has been criticized for supporting the international expansion of some private firms. Economists around the world recognize that Brazil has its own development bank, a key financial organization, bigger than the World Bank. As the Nobel Prize economist J. Stiglitz opinion, "''... the BNDES is a huge development bank (...) People don’t realize this, but Brazil has actually shown how a single country can create a very effective development bank (...) that actually promotes real development without all the conditionality and all the trappings around the old institutions''". Despite the recognition of financial volume, effective infrastructure and organization, the bank is used by only a few industries. The concentration of financial volume in few and perhaps questionable industries contradicts the bank's development and diffusion goals. The concentration contrasts greatly with Brazilian's per capita income and its many small and medium-sized enterprises.

External links

*
Introduction to Banco Nacional de Desenvolvimento Econômico e Social in English

References

{{DEFAULTSORT:Bndes Banks of Brazil Companies based in Rio de Janeiro (city) Banks established in 1952 1952 establishments in Brazil Government-owned companies of Brazil Development finance institutions Economic development Trade routes