BNDES reports first half-year loss

Skip to:

BNDES reported a huge loss of R2.17 billion ($680.9 million) through the first six months of the year as it prepares for a surge in loan defaults.

The reported figure was R5.7 billion lower than a R3.5 billion profit in the first half of 2015, marking the first time the bank reported a first half loss. Mounting interest rates are expected to have contributed to the rise in defaults. The bank increased rates in five consecutive quarters since the start of 2015. 

The Brazilian development bank wrote off significant chunks of its investment portfolio with bankruptcies rife as the Brazilian economy struggles.

It has announced plans to sell equity positions in companies in order to begin an early repayment of funds to the Brazilian Treasury in an attempt to shore up the country’s fiscal deficit. The repayments are expected to stifle lending as budgets shrink.

Related analytics

Transaction Name Stage Est. Value
Corvus Energy/CAD6.5 million/0617 Financial close 4.88
Atlas Air/$18.7 million/0617 Financial close 18.70
Alliance One International/$155 million/0617 Financial close 155.00
Valeant Pharmaceuticals/$67.5 million/0515 Financial close 67.50
Grupo Monge/$120 million/0517 Financial close 120.00
No data available
More transactions

Trade Finance on Twitter