Posts Tagged ‘Eike Batista’

BNDES: Brazil’s really big bank

Monday, December 16th, 2013

Juan Forero reports on BNDES, the Brazilian Development Bank, A bank that may be too big for Brazil.
BNDES:

  • has loaned a third of a trillion dollars since 2010, twice the amount the World Bank provided to about 100 countries combined
  • According to critics, most of the money goes to the country’s richest and most politically connected companies, among them JBS (the largest contributor to Dilma Rousseff’s campaign), construction giant Odebrecht, and now-broke Eike Batista’s EBX Group (which received $4 billion in loans).
  • Treasury funds and payroll tax revenue are used for loans.
  • In exchange for loans, BNDES has acquired a minority stake in dozens of private companies, giving the bank’s executives a say in their operations.

For all practical purposes, BNDS is acting as an investment bank, not a public institution focused on fostering social development, while maintaining its lack of transparency,

But analysts say there is another downside to BNDES’s big spending: It fans inflation, which has remained stubbornly high at just under 6 percent a year.

To keep it under control, the Central Bank on Nov. 27 raised its benchmark rate to 10 percent. Such a high interest rate — the highest of any developed country — is believed to crowd out the development of private lenders.

What could possibly go wrong?

The Memorial Day Carnival of Latin America and the Caribbean

Monday, May 28th, 2012

LatinAmerARGENTINA
Argentina Banks Lost $518M In Foreign Currency Deposits Last Week

EU takes action against Argentina at WTO over import restrictions.

Argentina’s resource-rich province tries to develop gas fields

BRAZIL
Eike Batista
The salesman of Brazil
Brazil’s richest man is betting on resources and infrastructure. Can he deliver?

GE Bets on Brazilian Tycoon Batista

CHILE
Gay rights in Chile
An atrocity prompts change
A sad milestone in the battle for tolerance

COLOMBIA
Giving peace a chance
Or letting justice rule untrammeled

CUBA
The internet cable that only works for the Castro dictatorship

Vatican Launches New Program: Medals for Tyrants and Their Lackeys

DOMINICAN REPUBLIC
After Leonel
The new president risks governing in his predecessor’s shadow

ECUADOR
Minsk to deepen co-operation with Cuba, Ecuador

MEXICO
Why Lorenzo Pagina and Sergio Brino had to found Google in Mexico, via American Digest.

Drug Probe Targets Mexican Army

Mexico finds cartels making fake military uniforms

Women on the rise in Mexican drug cartels

PARAGUAY
Deliberately late pizza deliveries raise awareness of world hunger and money for charity
A risky advertising campaign cooked up by agency ONIRIA/TBWA has seen two pizzerias in Paraguay provide a deliberately slow service to help customers begin to understand those affected by hunger
, via Best of the Web, which says,

So the pizzeria failed to deliver what it promised and was more interested in making its customers feel guilty about their success. Is this a true story or a parable about the Obama administration?

PUERTO RICO
Puerto Rico bail referendum sparks rights debate

VENEZUELA
Iran invites Venezuelan President Chavez to NAM summit; $5 says he ain’t gonna make it.

New Tensions as Colombian Soldiers Killed Near Venezuela

Ties between Bogota and Caracas are starting to fray again after 12 Colombian soldiers were killed near the Venezuela border, allegedly by Colombian rebels who are said to be using the neighboring country as a comfortable refuge.

The week’s posts:
Venezuela: The posters

Cuba: Hookers rob chef

Gay Cuban-Americans protest Raul Castro’s daughter’s visit

Venezuela: Chavez back on TV

In Silvio Canto’s podcast.