BNDES to provide $704m to finance SMEs during virus crisis
Brazilian development bank BNDES is to invest BRL4 billion ($703.52 million) in asset managers focused on financing small companies.
The lender said it will invest in up to ten private credit funds, to be selected in the coming weeks, in a move aimed at helping an increased number of small companies - which have been among the hardest hit by the coronavirus outbreak slowdown - weather the crisis.
BNDES said it could also consider investing in similar funds created by larger companies aiming to provide liquidity to their clients. The Brazilian government last month launched a BRL40 billion program aimed at helping SMEs pay their employees during the quarantine. While stay-at-home measures have crushed demand at restaurants, bars, barbers and many retailers, only a quarter of the funds have been used so far.
