The Andean Development Corporation (CAF) has announced an increase in lines of credit to US$200mn in favour of Banco do Brasil and US$200mn for Banco Ita BBA totalling US$400mn, with the objective of backing foreign trade, working capital and investment by companies in low-risk sectors with high added value.
“These new approvals in favour of the Brazilian financial system are part of the CAF strategy to offer effective support for the fight against poverty by financing productive activities that generate employment and strengthen Latin American development, through the catalysing role assumed by the corporation,” says Enrique Garca. president and CEO of the multilateral financial organisation. “All this is in line with the role that CAF has been playing, following the expansion and growth of the Brazilian financial sector in recent years.”
According to Garca, the banks will use the lines of credit to finance short and medium-term operations for their customers with the objective of promoting Brazilian investment and foreign trade.
Banco Do Brasil is owned by the Brazilian state and is the largest bank by level of assets in the financial system of that country and in South America. The institution operates in retail banking, granting consumer credit, loans to SMEs, and agricultural loans; and in wholesale banking through corporate loans. It also offers financing for foreign trade, capital market operations, asset management and equity subscription and debt instruments.
Banco Ita BBA is the second private bank and fourth full-service bank in the Brazilian financial system, managing approximately 10.3% of the assets of the system. Banco Ita targets its strategy to the retail segment and small and medium-sized enterprises, while Banco Ita BBA concentrates on the large corporation segment.