Brazil's BNDES to cut down on financing, increase rates -report
RIO DE JANEIRO May 8 (Reuters) - Brazil's national development bank will supply less credit and increase interest rates for upcoming concessions of infrastructure projects, newspaper Valor Economico reported on Friday.
The bank, known as BNDES, will limit its participation in total financing in the new infrastructure projects to 50 percent, down from the current 70 percent limit, Valor reported, without citing its sources.
Interest rates will also go up. Only 25 percent of the total financing will benefit from the bank's lower TJLP long-term rate, currently at 6 percent, the paper reported. That can go up to 50 percent if a company agrees to raise part of the financing by issuing debentures.
BNDES' representatives were not immediately available to comment on the report.
Though expected to be smaller than the three previous investment programs, this year's package is seen as President Dilma Rousseff's best hope of offseting aggressive economic belt-tightening.
State lending to the projects is expected to decline, however, as the government tries to curb rising debt levels to protect its investment grade. Unlike in previous years, the Treasury is not expected to transfer funds to the BNDES in 2015. (Reporting by Walter Brandimarte; Editing by Jeffrey Benkoe)
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