Credit line will be used by BNDES in different sectors of the domestic economy and, according to the bank, represents the expansion of cooperation in local currency between countries
The country’s first Chinese currency loan operation with the Development Bank (CDB) will be worth 5 billion renminbis (the equivalent of R$4 billion) and has a term of up to three years, according to the Brazilian institution. The agreement was reached today, during a state visit by the President of China, to Brazil. In total, the two countries signed 37 acts this Wednesday (20). The credit line will be used by BNDES in different sectors of the domestic economy and, according to the bank, represents the expansion of cooperation in local currency between countries. This is a topic that has been increasingly discussed by members of Brics – a group that was initially also formed by Russia and India, plus South Africa and now totals 10 members.
For the Brazilian development bank, the operation also makes it possible to promote bilateral trade between China and Brazil. The Asian giant is the largest buyer of domestic products. “BNDES has intensified its international operations, seeking closer ties with various development institutions to diversify funding and expand investments in Brazil. The Bank’s partnership with China is historic, since 1997, resulting in cooperation on projects of interest to China and Brazil.
The loan in Chinese currency is an important step to diversify the options of Brazilian businesspeople, especially exporters, because they have the natural exchange rate protection resulting from their exports”, explained the president of BNDES, Aloizio Mercadante, in a note. This year, Brazil and China celebrate 50 years of diplomatic relations and 20 years of the creation of the Sino-Brazilian High Level Commission for Concertation and Cooperation (Cosban).
*With information from Estadão Conteúdo
Published by Sarah Paula
