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Long-Term Finance in Brazil: The Role of the Brazilian Development Bank (BNDES)

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The New Brazilian Economy

Abstract

This article examines the origins and evolution of long-term financing in Brazil. The need for government intervention in the form of a development bank is explained. Particularities of the Brazilian experience with its state-owned National Development Bank (BNDES) are described and analyzed. The final section tackles the challenges and limitations of the Brazilian system of long-term financing following the global credit crunch of 2008, when BNDES disbursements boomed because of major but unsustainable changes in its capital structure. The article concludes that the system for development finance in Brazil has become ineffective and spurs macroeconomic instability.

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Author information

Authors and Affiliations

  1. School of International and Public Affairs, Columbia University, New York, USA

    Luiz Pinto

  2. Institute of Economics, Federal University of Rio de Janeiro, Rio de Janeiro, Brazil

    Marcos Reis

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  1. Luiz Pinto
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  2. Marcos Reis
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Editors and Affiliations

  1. Yeshiva University, New York, NY, USA

    Elias C. Grivoyannis

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Pinto, L., Reis, M. (2017). Long-Term Finance in Brazil: The Role of the Brazilian Development Bank (BNDES). In: Grivoyannis, E. (eds) The New Brazilian Economy. Palgrave Macmillan, New York. https://doi.org/10.1057/978-1-137-46297-8_8

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  • DOI: https://doi.org/10.1057/978-1-137-46297-8_8

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  • Publisher Name: Palgrave Macmillan, New York

  • Print ISBN: 978-1-137-46296-1

  • Online ISBN: 978-1-137-46297-8

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