RIO DE JANEIRO, BRAZIL – The Brazilian National Development Bank (BNDES), one of the biggest development banks in the world, announced yesterday, September 30th, that the transactions carried out between the institution and the Odebrecht Group, from 2003 to 2018, resulted in existing or potential losses of R$ 14.6 billion (US$3.65 billion).
The information was disclosed by way of a note that, according to BNDES, aims to provide transparency to the bank’s actions.
According to BNDES, R$3.7 billion refers to losses by the Federal Government in export financing credits. A further R$8.7 billion would be potential (maximum) losses, corresponding to BNDES’ total amount of credit exposure to the Odebrecht Group’s companies under judicial reorganization.
The remaining losses, according to the bank, would result from the sale of its Atvos shares (an effective loss of R$800 million) and OTP shares (which would result in a potential loss of R $1.4 billion).
According to the note, over the course of 16 years (2003 to 2018), BNDES invested R$51.3 billion in Odebrecht, through the offer of direct and indirect credit, specific financing for exports and the acquisition of equity interests.
The Brazilian Development Bank is the main financing agent for development in Brazil. Since its foundation, in 1952, BNDES has played a fundamental role in stimulating the expansion of industry and infrastructure in the country.
Over the course of the Bank’s history, its operations have evolved in accordance with the Brazilian socio-economic challenges, and now they include support for exports, technological innovation, sustainable socio-environmental development and the modernization of public administration.
Source: Agência Brasil