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Export credit pillars boost Brazilian trade
22 July 2009
Michele Martensen examines the Brazilian market’s capacity to source export credit financing and guarantees and the routes being used by corporates to fund their capital equipment imports and projects.
Read more:
Brazil export credit
ECA Latin America
export finance Brazil
infrastructure Brazil
Valentino Gallo
Ed Bullen
Clovis Ikeda
Vitor Gabrielli
Before the credit crisis, the Brazilian export finance market was one that offered limited export credit agency (ECA) activity. Fast-forward 18 months and this is no longer the case. Reduced credit appetite among commercial banks and tightening liquidity has led to it becoming an increasingly active arena for export credits.
With the Brazilian economy weathering the storm a good deal better and recovering far faster than many other countries in the region, it is perceived to be in much better shape than many other emerging markets.
The Brazilian banking system has dealt with issues such as problematic local portfolio exposures swiftly; local banks are injecting sufficient degrees of liquidity in terms of working capital lines for local corporates.
Swap lines that were put in place between the Fed and the Central Bank of Brazil at the end of February have also supported dollar liquidity. In the short-term trade finance segment,...
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