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BNDES provides $944 mn for SME’s

The National Bank for Economic and Social Development (BNDES) reached a total of R$5 billion ($944 mm) for micro, small and medium businesses in the working capital loan line. According to BNDES, 16,318 operations have already been approved with 15,094 companies, employing 372,800 people, with an average value of R$318,000 ($60k) per operation.

CPFL directs $1.5 mn in incentives to exchange electric motors

Companies in São Paulo and Rio Grande do Sul, which exchange old engines for more efficient technologies, may have a bonus of up to 40% in the acquisition of the new model. This is the motto of an action developed by CPFL Energia in partnership with the manufacturer Weg. The energy company will invest R$8.1 million to CPFL Paulista, CPFL Piratininga, CPFL Santa Cruz and RGE.

Brazil’s EMBI+ projected to close 2020 with an average of 350 points

Since the outbreak of the coronavirus, Brazil has risen from 210 to 388 points between February and June on JPMorgan’s EMBI+ (Emerging Markets Bond Index). This indicator works as a thermometer of the level of confidence that foreign investors have in emerging countries. Consultancy Macrosector project that EMBI+ Brazil could close the year with an average of 350 points. If this estimation is correct, it would be the worst result since the impeachment of president Dilma Rousseff in 2016, when the index hit 384 points.

Minister of Agriculture states that “Agribusiness doesn’t need the Amazon”

According to the Minister of Agriculture, Tereza Cristina, agribusiness does not need the Amazon to expand its production in the country. This statement is made at a time when Brazil is leading record of deforestation in the largest tropical forest on the planet. The minister says that part of the criticism is related to commercial interests and competition, and that agro, despite the pandemic, has increased exports and domestic consumption.

Aneel closes first half of the year with a total of 3 GW

The National Electrical Energy Agency (Aneel) closed the first half of the year with a total of 3,003.41 MW of capacity released for commercial operation of power plants in 12 states in the country. In June alone, 141.47 MW went into operation, almost three times more than that scheduled for the month. According to Aneel, the highlights of the year have been solar and wind power plants – each with 18% of the total aggregate to the system.

Brazilian industrial production increased by 7% in May

Brazilian industrial production increased by 7% from April to May this year, according to IBGE. The rise, which is the highest since June 2018 (12.9%), came after two successive declines due to the coronavirus in March (-9.2%) and April (-18.8%). Industrial production accumulated falls of 8% in the quarterly, 11.2% for the year and 5.4% for the 12-month period.

Sales increase 35.2% in Sao Paulo with the reopening of some segments of trade

The reopening of some segments of trade since the last 10 days is already reflecting positively on sales in the sector. According to the São Paulo Trade Association (ACSP), there are signs of slight growth in sales. Cash retail sales in São Paulo rose by 47.3% in June compared to May, while the long-term sales grew 23%, according to ACSP. As a result, the average rate of general sales was up 35.2%.

Brazil’s oil production drops 6.5% in May

Brazil’s oil production in May totalled 2.765 million barrels per day, up 1.3 % on an annual comparison, but down 6.5 % from April due to the impact of the coronavirus on the sector, the ANP said. The agency noted that 34 oil and gas fields were temporarily shut down during May due to the effects of Covid-19, 16 of which were maritime and 18 terrestrials.

Private banks will have a 70% loan of up to $3.1 bn to help energy distributors in Brazil

Private banks will have 70% of the so-called “Conta-Covid”, a financing package of up to R$16.4 billion ($3.1 bn) made possible with government support to help the energy distributors’ cash during the pandemic. The National Bank for Economic and Social Development (BNDES) and public banks will enter with about R$5 billion ($944 mm) in the operation, which ended up with costs higher than expected by the sector.