Brazil Plans To Boost Exports With New ‘Line-of-Credit’ Scheme

Brazilian government is offering incentives - a 'line of credits' financing scheme, to the countries buying Brazilian defense products.

The president of the National Bank for Economic and Social Development (BNDES), Maria Sílvia Bastos Marques, announced on Tuesday during LAAD 2017, which is taking place at Rio de Janeiro that customers could receive financing of up to 25 years with a five-year grace period. Loans could cover up to 100% of the value of the sale.

As per the Brazilian Ministry of Defence’s press release, lines of credit to buyers would be offered by the Brazilian Development Bank.

The Government of Brazil considered the provision of a formal line-of-credit system as a crucial factor for boosting exports.

"These [defense industry exports] are different from the usual exports because they are done on a country-to-country basis," Marques said. "What the Brazilian government is doing, in a coordinated way, with the Ministries of Finance, Defense, Foreign Relations and all other bodies involved, is to bring international competitiveness to our industry”.

Minister Jungmann said that the scheme could help Embraer to add new KC-390 and EMB-314 Super Tucano customers.