MICROCAPITAL BRIEF: Brazil Launches $9b Credit Line Intended to Grow Micro-, Small Enterprises

The Brazilian government recently announced a new credit line of BRL 30 billion (approximately USD 9.4 billion) for banks to fund the working capital, equipment and advisory needs of micro- and small enterprises (MSEs). BRL 20 billion (USD 6.2 billion) of the total will be routed through public banks Banco do Brasil and Caixa Econômica Federal, with the remainder facilitated by private-sector banks Bradesco, Itaú Unibanco and Santander.

As of December 2015, Banco do Brasil reports consolidated total assets of BRL 1.4 trillion (USD 437 billion). It has approximately 5,400 branches in Brazil and offices in 24 additional other countries. As of December 31, 2015, Caixa reports total assets of BRL 1.2 trillion (USD 375 billion). It has 4,300 branches in Brazil and additional offices in Japan, the United States and Venezuela.

By Michelle Dold, Research Associate

About Banco do Brasil (BB)

Banco do Brasil (BB) is a state-owned commercial bank headquartered in Brasília that provides credit, savings and investment services to institutional and individual clients. Its subsidiaries are: (1) BB Seguros Participações SA, which “hold[s] interests in insurance and capitalization companies and private pension companies that operate private health care plans;” and (2) BB Cor Participações SA, which “hold[s] interests in asset management and brokerage companies, and …[supports] companies that operate private pension plans, property, casualty, life, capitalization and health insurance lines…” BB has 49 offices in 24 countries. As of December 2015, it reports consolidated assets of BRL 1.4 trillion (USD 437 billion), total deposits of BRL 464 billion (USD 145 billion), return on assets of 1.1 percent and return on equity of 16.1 percent.

About Caixa Econômica Federal

Caixa Econômica Federal is a state-owned commercial bank headquartered in Brasília that provides credit, savings and investment products and services as well as financing for infrastructure, sanitation and development programs in Brazil. Caixa reports 78.3 million checking and savings account clients and 4,300 branches in Brazil. It also has offices in Japan, the United States and Venezuela. As of December 31, 2015, Caixa reports total assets of BRL 1.2 trillion (USD 375 billion).

Sources and Additional Information:

[1] BrazilGov News: “Government offers R$ 30 billion in credit for micro and small enterprises”

[2] MicroCapital Universe Profile: Banco do Brasil

[3] MicroCapital Universe Profile: Caixa Econômica Federal

[4] MicroCapital Universe Profile: Itaú Unibanco

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