April 15, 2008

Brazil BNDES starts credit line for grain storage units

Brazil's National Development Bank (BNDES) has started a line of credit for companies that want to build grain storage facilities, a BNDES press officer confirmed Monday.

BNDES has earmarked US$178 million worth of credit to provide eight-year loans at an interest rate of 6.75 percent a year, according to a report by local daily newspaper Valor Economico.

Beto Albuquerque, vice leader of the government in Brazil's lower house of Congress, said the loans aim to reduce the lack of grain storage in Brazil, Valor reported.

According to the National Commodities Supply Corporation or Conab, Brazil's storage capacity is around 123.3 million tonnes and it is expected to need 140.7 million tonnes for the 2007-08 crop, according to Valor.