BNDES ups small biz lending 20% in 2003

Brazil's national development bank BNDES boosted its lending to micro and small enterprises 20% to more than 10bn reais (US$3.4bn) this year compared to 2002, local daily Jornal do Commercio quoted interim development minister Mario Fortes as saying. Brazil's federal banks Banco do Brasil (BB), Caixa Economica Federal (CEF), Banco da Amazonia and Banco do Nordeste have also been aggressive in their small business lending this year, Fortes said. The four banks boosted their lending to micro and small-sized enterprises 38% during the 10 first months to 17.3bn reais, he said. The government of Luiz Inacio Lula da Silva has made lending to small businesses and low-income individuals one of its top economic priorities. CEF announced recently that a government-backed initiative had seen a million low income individuals sign up for basic banking accounts in less than six months. BB also said recently that 500,000 of the 2 million new clients it had captured this year were low-income individuals. BNDES is the chief federal agency for long-term funding aimed at promoting development in Brazil. It finances private companies in all areas, including foreign firms set up in Brazil, assisting them in identifying new investment opportunities.