The Brazilian National Development Bank goes International: Innovations and Limitations of BNDES' Internationalization

The Brazilian National Development Bank (BNDES) saw dramatic increases in its financial resources for lending after 2005. This article explains how the bank has been ‘internationalized’ alongside this growth in total resources, beginning with export finance and expanding to supporting foreign direct...

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Bibliographic Details
Published in:Global policy 2014-09, Vol.5 (3), p.360-365
Main Author: Hochstetler, Kathryn
Format: Article
Language:English
Subjects:
Development banks
International finance
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Summary:The Brazilian National Development Bank (BNDES) saw dramatic increases in its financial resources for lending after 2005. This article explains how the bank has been ‘internationalized’ alongside this growth in total resources, beginning with export finance and expanding to supporting foreign direct investments and other international economic activities. At the same time, legal and structural factors restrict BNDES’ international activities in ways that are often poorly understood, but that keep many of the bank's resources inside Brazil or tightly linked to Brazilian firms. After a general explanation of these factors, this paper examines empirical claims about BNDES’ lending to its South American neighbors, concluding that it is considerably more limited than both the bank's critics and champions contend. Examining the whole picture of BNDES lending, the bank has clearly become a potential source of attractive additional funding for infrastructure projects and other investments at home and across South America.
ISSN:1758-5880
1758-5899
DOI:10.1111/1758-5899.12131