05/21/2024 – 23:03
Approved in the Chamber of Deputies last week, the bill that creates the Development Credit Letter (LCD) could leave three development banks less dependent on state treasuries: Banco de Desenvolvimento de Minas Gerais (BDMG), Banco de Desenvolvimento do Espírito Santo (Bandes) and Regional Development Bank of the Far South (BRDE). The project that creates the new title still needs to be considered in the Federal Senate.
“It will be a new source of domestic funding not only for BNDES, but also for BDMG, Bandes and BRDE. With this, these state banks will be able to stand on their own feet and depend less on treasuries. They will be able to fulfill their function without burdening fiscal policy so much”, explained this Tuesday (21) Nelson Barbosa, director of Planning and Project Structuring at BNDES.
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The issuance will be exclusive to the National Social Development Bank (BNDES) or other development banks upon authorization from the Central Bank. Through LCDs, these institutions will be able to raise resources to finance their actions. The title also becomes a means for interested investors to support the country’s development.
LCDs must function in a similar way to Real Estate Credit Letters (LCI) and Agribusiness Credit Letters (LCA), which are issued by the private sector to finance activities in these sectors. These are securities whose income is exempt from Income Tax for individuals.
The government’s expectation is that LCDs will contribute to generating resources that allow credit to be granted to strengthen, above all, the national industry. In the Chamber of Deputies, the project was approved by 339 votes against 91.
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