SAO PAULO, Sept 1 (Reuters) - Brazil’s development bank has been surprised by a government request that it pay back 30 billion reais ($9.55 billion) this year, which it fears could hurt its financing capacity when the economy shows signs of recovery, a source close to BNDES management told Reuters on Friday.
Banco Nacional de Desenvolvimento Econômico e Social, as BNDES is formally known, recently negotiated the return of 80 billion reais to the government in 2018, and repaid part of 500 billion reais transferred from federal coffers in recent years. Last year, BNDES returned 100 billion reais.
The government wants an additional repayment of 30 billion reais this year, according to the source, who requested anonymity because the negotiation was private.
“BNDES was taken by surprise,” the source said.
“The talks need to be done in a calm way so as not to jeopardize the bank’s cash flow,” he said, adding that BNDES would have the capacity to pay back around 80 billion reais in 2017 and 2018 in total.
Brazil’s government, which is struggling to control expenses, in August announced measures to boost its privatization program as a way to raise cash.
$1 = 3.1419 reais Reporting by Marcelo Teixeira; Editing by Richard Chang