RIO – Delay in payments in Venezuelan and Cuban debt affected the BNDES non-execution rate in the third quarter of 2018, but did not affect the results of that period, 14, Director of Strategy and Digital Transformation of the Development Institution, Ricardo Ramos.
On Tuesday night, Viev Forum Posts found that the delay in debt payments with BNDES by Venezuela, Cuba and Mozambique amounted to $ 1.8 billion. The BNDES Financial Report published in the third quarter, released on Wednesday, shows that the non-enforcement rate was more than 90 days at 2.94%, compared with 1.45% in the second quarter. Credit risk provisions, however, had a negative outcome of $ 1.6 billion in the third quarter, almost all negative R 1.68 billion in the total accumulated between January and September.
The director of BNDES in the field of integrity, control and risk management, Carlos Frederico Rangel, said the non-execution rate increased from the second to the third quarter "due to the deterioration of the rating, (third quarter)."
Asked whether the delay in exporting and exporting the financing of goods and services has affected the increase in the rate of delinquency and the third quarter, Ramos said: "They influenced, but again, the bank's impact was a bit affected." According to the executive, the provisions with backward debts of countries were offset by reversals of other provisions, as "obtained loans returned".
Ramos refused to list the amounts reserved, but stressed that the national loan guarantees loans to countries through the Export Guarantee Fund (FGG) and strengthened the conviction that in the future, debts will be honored. "These countries, in a very similar way to the states of the federation, do not break. The countries are going through economic cycles," the BNDES director said.
BNDES has registered net income of $ 1.603 billion in the third quarter, a a decrease of 13.7% compared to the same period of 2017. With a strong result in the first half of the year from January to September, net income was $ 6.363 billion, up 98.7% from the first nine months of the year.
"We achieved a score of one year in nine months," said Ricardo Ramos, director of the BNDES Strategy and Digital Transformation, at a press conference to comment on the results of the third quarter at the bank's headquarters in Rio.
In remark, BNDES explained that the result with capital interests and the fall in reserve costs increased its profit in the accumulated from January to September. In the third quarter, the equity ratio was $ 1.661 billion, and from January to September amounted to $ 5.762 billion. Credit risk provisions amounted to $ 1.681 billion, down from $ 5.637 billion in the first nine months of 2017.
With the results, the total assets of BNDES amounted to $ 791.5 billion, and shareholders' equity to $ 80.6 billion. Thus, the Basel Index at the end of the third quarter was 29.1%, compared to 29% in the second quarter.
Ramos also expressed optimism about the growth of demand for BNDES loan by the end of the year. "We are following somewhat higher expenditures than in 2017," the director said. In 2017, the Bank issued $ 70.8 billion, said the executive.
In the third quarter, BNDES maintained a strategy for selling its shares. Between July and September, the emphasis was on the sale of shares of the mining company Vale, which generated about $ 600 million of net banks. The BNDES portfolio closed the third quarter to 99.7 billion dollars.
With Vale's sale of shares, the total BNDES share of the company was 7.35% – in December last year it was 7.60%. Rudar also contributed to the payment of dividends in the amount of USD 594 million in the third quarter.
Petrobras paid $ 55 million in dividends. In the first half of the year, the sale of Petrobras shares was unsettled, but in the third quarter, BNDES did not expressly sell the shares. The total share of the state-owned bank was 15.24% of the capital, of which 8.37% was held through BNDESPar.
In total, the result of equity participation in the third quarter amounted to $ 1.661 billion, and from January to September amounted to $ 5.762 billion.
Ricardo Ramos, Director of Strategy and Digital Transformation at BNDES, confirmed that the strategy is to sell the shares with profit. "If the mature action is above its fair price, we can enter the sales process," Ramos told a press conference to discuss the results of the third quarter at the BNDES headquarters in Rio.