WORLD TRADE
ORGANIZATIONG/SCM/N/25/BRA
G/SCM/N/38/BRAG/SCM/N/48/BRA
G/SCM/N/60/BRA
8 January 2001
(01-0061)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
New and Full and Updating Notifications Pursuant to Article XVI:1
of the GATT 1994 and Article 25 of the SCM Agreement
BRAZIL
The following communication, dated 21 November 2000, has been received from the
Permanent Mission of Brazil.
_______________
The following notification provides details on federal programmes for fiscal years 1996
through 1999.  It serves as the new and full subsidies notification for federal programmes as well as
the updating notifications regarding this period.
This notification does not prejudge the nature of the programmes herein with respect to
Articles 1 and 2 of the Agreement on Subsidies.  Data may reflect approximations, estimates, or
preliminary information.  Technical or legal inaccu racies may have been inadvertently introduced in
the text given the attempt to make the description of  the programmes sufficiently illustrative, but also
straightforward and concise.  This notification may be supplemented, in due time, to incorporate
further elements or clarifications.
TABLE OF CONTENTS
I. EXPORT FINANCING  PROGRAMME ...............................................................................2
II. SPECIAL EXPORT PR OGRAMMES (BEFIEX) ................................................................4
III. STEEL I NDUSTR Y............................................................................................................. .....8
IV. REGIONAL INCENTIVES (ADMIN ISTERED BY S UDAM/SUDENE ) ..........................8
V. FINAM/FINOR.................................................................................................................. .....11
VI. NE/FNO/FCO.................................................................................................................. ........14G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 2
I. EXPORT FINANCING PROGRAMME
1. Title the subsidy programme if relevant or brief description or identification of the subsidy
Export Financing Programme (“Programa de Financiamento às Exportações – Proex”):
interest rate equalization mechanism.
2. Period covered by the notification
January 1996 to 18 November 1999.  PROEX regulations are currently under review and will
be further modified in light of DSB recommendations in Brazil - Export Financing for Aircraft .
3.  Policy objective and/or purpose of the subsidy
The objective of the PROEX is to provide access to export financing at international market
levels, particularly in the case of goods that require medium and long-term loans.
4. Background and authority for the subsidy (including identification of the legislation under
which it is granted)
Ministry of Development Industry and Foreign Trade (Foreign Trade Bureau) and Ministry of
Finance (National Treasury Bureau).
Legislation: Since it was created in 1991, PROEX has been continuously evolving.  Since the
most recent notification in 1996, the following modifications were introduced.
Law no. 8,187, dated 1 June 1991 permitted support only during the post-shipment phase.
That law was revoked by Provisional Measure 1,574, dated 5 December 1997.  With the revocation of
the aforementioned law, interest equalization payments to finance production were also permitted,
although this mechanism has not been regulated and is not operational.
National Monetary Council (CMN) Resolution 2,214, of 29 November 1995, set out the
conditions for the use of the interest equalization system.
Resolution CMN No. 2,380, of 25 April 1997, which revoked Resolution CMN No. 2,214, of
29 November 1995, established the new conditions for negotiation, in the secondary market, of bonds
issued relative to exports supported by PROEX.  Resolution No. 2,490, of 30 April 1998, allowed
exports supported by PROEX to have their value financed using a non-cumulative mix of both
financing and interest equalization.
Resolution CMN 2,576 of 17 December 1998 revoked Resolutions CMN 2,380 of
25 April 1997 and 2,490 of 30 April 1998, allowing software to be supported.
On 19 November 1999 Resolution CMN No. 2,667 modified Resolution CMN 2,576 of
17 December 1998, stipulating that in the financing of commuter airplanes, equalization will be
established operation by operation, at levels that will be differentiated, preferentially using as a
reference the ten-year US Treasury Bond, with a spread of 0.2 per cent per year, to be reviewed
periodically, based on market practices. (refer to I.2, above).
Circular Letter No. 2,601 of 29 November 1995 of the Central Bank of Brazil – BACEN,
which established maximum percentages applicable to interest equalization in PROEX, ranging fromG/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 3
2 per cent p.a. to 3.8 per cent p.a., was modified by Circular Letter BACEN No. 2,843 of
25 March 1999, which established maximum percentages of 1 per cent p.a. to 3.8 per cent p.a.
Currently in force is Circular Letter BACEN No. 2,881, of 19 November 1999, which revoked
Circular Letter BACEN No. 2,843 of 25 March 1999, and established maximum percentages of0.5 per cent p.a. to 2.5 per cent p.a.
The legal framework of the Programme is completed with Directives issued by the Ministry
of Development Industry and Foreign Trade (MDIC), which outlines details such as the list of eligible
products and their respective terms and the formula that links the percentage of local-content to the
percentage of support by PROEX.
On 8 April 1997 Directive No. 33 of the Ministry of Industry, Trade and Tourism – MICT
revoked Directive No. 368 of 5 December 1995, consolidating the list of eligible products.  Directive
MICT No. 53 of 8 May 1997 provided for the payment of interest equalization within PROEX of up
to 100 per cent of the export value for some products of that list.  Directive MICT No. 83 of
10 July 97 included an additional product on the eligible PROEX list. Directives MICT Nos. 7 of13 January 1998, and 23 of 19 February 1998, modified the list that contained the eligible products
and their respective terms, thereby revoking the Annex to Directive MICT No. 33 of 8 April 1997 and
Directive MICT No. 83 of 10 July 1997.
Directive MICT No. 146 of 28 December 1998, which revoked Directive No. 33 of
8 April 1997 and Directive Nos. 53 of 8 May 1997 and 23 of 19 February 1998, lowered the
maximum term for repayment of some products to be equalized, from 180 to 60 days.  They also
added some products to the eligibility list.  Directive No. 93 of 26 March 1999, of the Ministry of
Development, Industry and Foreign Trade - MDIC (the successor to MICT), limited PROEX support
to exports from the member-states of the Southern Common Market - MERCOSUL, making
consumer goods ineligible.  Directive MDIC No. 374 of 21 December 1999 revoked Directives MICT
No. 146 of 28 December 1998, and Directive MDIC No. 93 of 26 March 99, lowering even further the
maximum term for the repayment of a number of products, including goods with longer financing
terms, and limited, for all products, the payment of interest equalization within PROEX to no more
than 85 per cent of the export value of the transaction.
5. Form of the subsidy (i.e. grant. Loan. Tax concession)
Interest rate equalization (interest rate support at international market rates).
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others:
through what mechanisms: whether a fixed or fluctuating amount per unit: if the latter, how
determined)
The beneficiaries of interest equalization are the banks authorized to deal in foreign exchange
in Brazil and overseas financial institutions including Brazilian branches abroad that are financing
Brazilian exports.  The equalization will consist on the payment of part of the funding costs makingthe resulting interest rate equal to those prevailing in the international market.  Equalization rates are
fixed and limited by Banco Central do Brasil (Brazilian Central Bank) and they vary from 0.5 per cent
to a maximum of 2.5 per cent.  These equalization levels vary according to the maturity of each
specific loan, which range from 60 days to a maximum of 10 years.  Proex support will cover no more
than 85 per cent of the value of the transaction.G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 4
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous
year). Where provision of per unit subsidy information (for the year covered by the
notification, for the previous year, or both) is not possible, a full explanation
BUDGET FOR EQUALIZATION* (in US$ 1,000)
1996 1997 1998 1999
204,718.00 595,016.00 810,038.00 423,471.00
* Figures refer to the issuance of non-negotiable Treasury Notes (Notas do Tesouro Nacional
– Série NTN – I)
EXPENDITURES WITH EQUALIZATION (in US$ 1,000)
1996 1997 1998 1999
79,497.00 209,202.00 485,236.00 420,754.00
8. Duration of the subsidy and/or any other time limit s attached to it, including data of inception/
commencement
Indeterminate.
9. Statistical data permitting an assessment of the trade effects of the subsidy.  The specific and
scope of such statistics is left to the judgment of the notifying Member.  To the extent
possible, relevant an/or determinable, however, it  is desirable that such information include
statistics of production, consumption, imports and exports of the subsidized product (s) or
sector (s)
The trade effects are those related to the equaliza tion of the interest rates, as described in the
answer to question 6.
II. SPECIAL EXPORT PROGRAMMES (BEFIEX)
1. Title of the subsidy programme if relevant or brief description of the subsidy
Special Export Programmes (Programas Especiais de Exportação - BEFIEX).  No new
programmes have been approved since 1990 and no modification was made to the rules on benefits
conceded.  Only those benefits under existing contracts will continue to apply, as the programme is
being de-activated. Because BEFIEX involves contracts between the government and beneficiary
businesses, most of which last for ten years, the incentives were maintained for those projects
approved up to 31 December 1989. However, the legislation permitted, under specific circumstances,the deferral of the terms of the contracts, in principle to end up in 1999, for up to thirty percent (30 per
cent) of the original contractual period. No programme will last beyond 31 December 2002.
2. Period covered by the notification
January 1996 to December 1999.G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 5
3. Policy objective and/or purpose of the subsidy
The basic objective of the BEFIEX programmes is to lower import costs of the beneficiaries
through the reduction or exemption of taxes.
4. Background and authority for the subsidy (including identification of the legislation under
which it is granted)
The BEFIEX programmes were created by Decree-Law nº 1.219, dated 15 May 1972, which
was revoked by Decree-Law nº 2.433, dated 19 May 1988, which established a new procedure for the
concession of fiscal incentives.
Law nº 8.032, dated 12 April 1990, revoked the exemptions and reductions of the import
duties and of the Tax on Industrialized Products (IPI).  This revocation includes fiscal incentives
given under Decree nº 2.433, which prevented the approval of new BEFIEX special export
programmes. The last programmes approved under the above mentioned Decree-Law are dated29 December 1989. Nevertheless it should be stressed that Article 10 of Law nº 8.032 preserved the
exemption and reductions that had been effectively conceded. Later, through Law nº 8.661, dated
2 June 1993, the legislation on the BEFIEX programmes was entirely revoked. Original procedures
continue to apply to programmes currently being phased out.
Currently, the Ministry of Development, Industry and Foreign Trade is responsible for the
administration of the remaining programmes.
5. Form of the subsidy (i.e. grant. Loan. Tax concession)
Decree-Law nº 1.219, dated 15 May 1972, allows for fiscal incentives by exempting or
reducing import duties and IPI imposed on imports of machinery, equipment, and inputs, as well as by
providing exemption from the Additional Contributi on on the Freight for Renovation of the Merchant
Marine (AFRMM).
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others:
through what mechanisms: whether a fixed or fluctuating amount per unit: if the latter, how
determined)
BEFIEX incentives were granted to firms that produce and export industrial goods. The
maximum limit that firms were authorized to import in terms of machinery, equipment and inputs,
with exemption or reduction of taxes, was established contractually.  Beneficiaries of the programmeshave to agree to a specific level of exports (f.o.b. value) and of net foreign exchange earnings to have
the right to import with fiscal incentives.  These imports were, nevertheless, limited to 1/3 of the f.o.b.
value of exports, with the exception of imports made under special customs regimes such as
drawback..
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous
year). Where provision of per unit subsidy information (for the year covered by the
notification, for previous year, or both) is not possible, a full explanation
In 1995, fiscal incentives granted under the BEFIEX special export programme amounted to
US$146.0 million, representing an average incentive of US$ 415.9 thousand per programme.  In 1996,
the value of fiscal incentives granted was US$ 102.3 million and the average incentive per programme
was US$307.2 thousand. In 1997, the value of fiscal incentives granted was US$59.7 million and theG/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 6
average incentive per programme was US$249.8 thousand.  In 1998, the value of fiscal incentives
granted was US$23.5 million and the average incentive per programme was US$123.7 thousand.  In
1999, these figures were US$14.5 million and US$91.8 thousand, respectively.
See table below
Year No. of
Programmes
(contracts)Total Fiscal Incentives
(US$ million)Average Incentive per
Programme
(US$ thousand)
1995 351 146.0 415.9
1996 333 102.3 307.2
1997 239   59.7 249.8
1998 190   23.5 123.7
1999 158   14.5   91.8
Source: MDIC - Ministry of Development, Industry and Foreign Trade
8. Duration of the subsidy and/or any other time limit s attached to it, including data of inception/
commencement
The concession of incentives began in 1972 and the last BEFIEX programme was scheduled
to end in December 1999.  However, as mentioned before, the legislation permitted the deferral of the
terms of the contracts, whose validity could be extended for up to thirty percent (30 per cent) of the
original contractual period.  After this period, which will not go beyond 31 December 2002, BEFIEXwill be definitively terminated.G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 7
9. Statistical data permitting an assessment of the trade effects of the subsidy.  The specific and
scope of such statistics is left to the judgment of the notifying Member.  To the extent
possible, relevant an/or determinable, however, it is desirable that such information includes
statistics of production, consumption, imports and exports of the subsidized product (s) or
sector (s)
See tables below.
US$ thousand
1995 1996 1997
ProductExports Subsidized
ImportsExports Subsidized
ImportsExports Subsidized
Imports
Metallurgical 2,420,636.8 107,128.4 2,122,104.8 31,287.8 2,095,107.6 16,902.6
Mechanical 353,081.0 59,379.8 219,752.1 26,353.3 145,428.9 57,237.1
Electrical &
Household
appliances938,966.6 73,747.7 603,067.0 38,792.4 563,694.0 13,528.3
Transport 732,083.5 151,197.2 513,582.7 88,422.5 415,263.3 96,070.0
Chemical 301,196.9 24,106.8 279,231,6 21,490.2 197,042.8 7,131.1
Pharmaceutical 0 0 0 0 0 0
Textile 718,546.3 58,041.1 634,625.1 40,098.1 378,328.9 22,183.5
Footwear 465,017.8 8,124.2 583,140.1 10,264.4 524,432.0 4,347.0
Food 520,063.7 52,225.6 540,381.2 50,891.5 409,524.1 31,588.7
Glass & Ceramic 102,251.9 12,235.6 83,018.1 1,172.5 75,910.6 960.9
Rubber 333,883.5 75,177.0 102,988.0 25,492.6 2,861.1 0
Plastic 10,565.9 664.1 16,517.9 0 5,523.6 0
Paper &
cardboard2,199,607.1 90,025.4 1,439,089.5 114,959.0 1,099,866.7 34,291.9
Wood &
furniture124,546.6 20,976.7 69,182.1 9,963.3 62,130.0 0
Various 94,775.5 4,233.8 83,273.4 2,333.6 82,982.9 385.1
Total 9,315,223.1 737,263.4 7,289,953.6 461,521.2 6,058,096.5 284,626.2
SOURCE: MDIC - Ministry of Development, Industry and Foreign TradeG/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 8
US$ thousand
1998 1999
ProductExports Subsidized
ImportsExports Subsidized
Imports
Metallurgical 1,065,957.0 20,854.6 1,484,447.8 28,404.5
Mechanical 89,382.8 24,668.6 94,917.8 9,210.6
Electrical & Household
appliances364,660.6 9,462.7 159,040.5 18,706.8
Transport 3,666.3 3,403.6 5,241.2 4,725.9
Chemical 179,111.1 4,676.5 170,726.5 852.2
Pharmaceutical 0 0 0 0
Textile 126,547.4 16,072.8 83,562.4 8,480.1
Footwear 288,065.2 2,238.1 232,783.4 4,371.2
Food 315,969.2 21,462.0 151,646.9 8,101.3
Glass & Ceramic 68,046.4 1,190.5 2,734.8 0
Rubber 0 0 0 0
Plastic 5,925.3 690.2 4,613.6 0
Paper & cardboard 717,764.4 13,180.2 716,341.5 10,045.3
Wood & furniture 56,284.9 2,555.6 11,165.3 0
Various 79,523.7 852.8 52,131.8 172.4
Total 3,360,904.3 121,308.2 3,169,353.5 93,070.3
SOURCE: MDIC - Ministry of Development, Industry and Foreign Trade
III. STEEL INDUSTRY
1. Title the subsidy programme if relevant or brief description or identification of the subsidy
Incentive related to the Tax on Industrialized Products (IPI) granted to the Brazilian steel
industry.  The programme was in force until 31 December 1996, when it was deactivated and all
contracts terminated.
IV. REGIONAL INCENTIVES (ADMINISTERED BY SUDAM/SUDENE)
“Superintendência para o Desenvolviment o da Amazônia” (SUDAM): the Amazon Region
Development Authority was established by La w no. 5,174, dated 27 October 1966.  “Superintendência
para o Desenvolvimento do Nordes te” (SUDENE): the Northeast Region Development Authority, was
established by Law 3,692, dated 15 December 1959 (see below).G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 9
1. Title the subsidy1 programme if relevant or brief description or identification of the subsidy
Fiscal incentives for the development of the Legal Amazon and of the Northeast Region.  They
include:
► Fiscal exemption: granted to industrial and agricultural companies that implement
new undertakings in the Amazon and Northeast regions.
► Income tax reduction granted to industrial and agricultural companies that maintain
undertakings in the Amazon and Northeast regions.
► Tax cuts for reinvestment: benefits industrial, agricultural, and construction
companies operating in the Amazon and Northeast regions, by permitting them to
deduct part of the corporate income tax, plus 50 per cent in the company’s own
capital resources, for purposes of reinvesting the resulting amount in equipment
modernization.
2. Period covered by the notification
January 1996 to December 1999.
3.  Policy objective and/or purpose of the subsidy
Given the different levels of economic development across the Brazilian regions, the
government created compensatory mechanisms fo r the development of the North, Northeast and
Midwest Regions, improving the ability of theses regions to attract private investments.
These mechanisms involve corporate tax (IRPJ) reductions and exemptions for companies
operating within the beneficiary regions.
In this context, with a view to supporting the development of the Northern and Northeastern
Regions, the Amazon Region Development Authority - SUDAM (Law no. 5,174, dated
27 October 1966) and the Northeast Region Develo pment Authority - SUDENE (Law 3,692, dated
15 December 1959) were created.  Their functions incl ude, among others, the ev aluation and approval of
projects of interest to the development of their resp ective regions and the granting of fiscal benefits and
financial cooperation to develop these projects.
The area covered by SUDAM is denominated Legal Amazonia, or the Amazon Region, and
encompasses the States of Acre, Amapá, Am azonas, Mato Grosso, Pará, Rondônia, Roraima,
                                                     
1 The Constitution of Brazil, in its article 3, item III of Title I, regarding the Fundamental Principles, considers that
"the fundamental objectives of the Federative Republic of Brazil are to eradicate poverty and substandard living conditions
and to reduce social and regional inequalities". In Section IV (article 43, paragraph 2, item III) of Chapter VII, Title III,which refers to the Organization of the State considers that "the regional incentives shall include, besides others, asprescribed by law, exemptions, reductions  or temporary deferment of federal taxes owed by individuals or by legal entities".
In article 151, item I, Section II of Title VI, regarding Taxation and Budget considers that "it is forbidden for the Union: to
institute a tribute which is not uniform throughout the entir e national territory (...), it being allowed to grant tax incentiv es
for the purposes of promoting the balanced social and economic development of the various regions of the country". Inarticle 165, paragraphs 6 and 7, Section II of Chapter II, Public Finances, of the previous Title, considers that "the budget b ill
shall be accompanied by a regionalized statement on the effect on revenues and expenses, deriving from exemptions,
amnesties, remissions, subsidies and benefits of a financial, tributary and credit nature (§ 6). The budget set forth (...)
compatible with the pluriannual plan, shall include the f unctions of reducing interregional inequalities, according to
populational criteria (§ 7). Therefore, the concept of subsidies granted for regional incentives must be qualified and includedin a "permitted subsidy" (forme r "green subsidies") framework.G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 10
Tocantins and part of Maranhão. The Amazon Region is an area of continental dimensions covering
5,046,143 square kilometers and corresponding to 59 per cent of the nation’s territory and
approximately 70 per cent of the so-called Pan-Amazon or Continental Amazon, which has a
population of approximately 22 million inhabitants heavily concentrated in urban areas and scatteredwidely across a vast rural area.
The jurisdiction of SUDENE encompasses the federal states of Maranhão, Piauí, Ceará,
Rio Grande do Norte, Paraíba, Pern ambuco, Alagoas, Sergipe and Bahia, in addition to an area of the
federal state of Minas Gerais included in the so-called “polígono das secas” (draught polygon).
The benefits are available to any enterprise lo cated in the Amazon or Northeast Regions capable
of generating jobs and income.
4. Background and authority for the subsidy (including identification of the legislation under
which it is granted)
The fiscal incentives, designed to induce economic activity in the Legal Amazon and Northeast
Region, are administered by SUDAM and SUDENE, which are autonomous federal entities.  These
incentives are based on corporate income tax reductions.
4.1. Major Legislation:
/g216 Law 8167 of January 16, 1991
/g216 Law 9532 of December 10, 1997
5. Form of the subsidy (i.e. grant. Loan. Tax concession)
Fiscal Incentives:
/g216 Exemption: 100 per cent of the corporate income tax up to the introduction of  Law 9532/97.
As of 1998 and up to 1999, the reduction was cut to 75 per cent and is scheduled to remain at
this level until 2013.
/g216 Reduction: 50 per cent up to the introduction of Law 9532/97.  As of 1998 and up to 1999, the
reduction was lowered to 37.5 per cent and is scheduled to remain at this level until 2003,
then dropping to 25 per cent from 2004 to 2008, and to 12.5 per cent from 2009 to 2013.
/g216 Reinvestment: 30 per cent of the corporate income tax plus 50 per cent in the beneficiary’s
own capital resources.
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others:
through what mechanisms: whether a fixed or fluctuating amount per unit: if the latter, how
determined)
Fiscal benefits are ensured to industrial and agricultural companies that have undertakings in
the Amazon or Northeast Regions.G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 11
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous
year). Where provision of per unit subsidy information (for the year covered by the
notification, for the previous year, or both) is not possible, a full explanation
Exemption/Reduction (R$ 1.00)
YEAR S U D A M SUDENE
1996 261,316,370 387,837,890
1997 765,775,980 829,412,310
1998 487,076,190 567,581,810
1999 266,699,152 174,124,714
Source: Secretaria da Receita Federal
8. Duration of the subsidy and/or any other time limit s attached to it, including data of inception/
commencement
Exemption of 100 per cent up to 1997 and reduction of 75 per cent since 1998: 10 years, as of
the date on which the project goes into operation, ending in 2013.  As of 2003, the term of the credit
(10 years) will be gradually reduced to observe the 2013 deadline.
Reduction of 37.5 per cent, on an annual basis, ending in 2013.Reinvestment of 30 per cent, on an annual basis, ending in 2013.
9. Statistical data permitting an assessment of th e trade effects of the subsidy. The specific and
scope of such statistics is left to the judgment of the notifying Member. To the extent
possible, relevant an/or determinable, however, it  is desirable that such information include
statistics of production, consumption, imports and exports of the subsidized product (s) or
sector (s)
Not available.
V. FINAM/FINOR
1. Title the subsidy programme if relevant or brief description or identification of the subsidy
“Fundo de Investimento da Amazônia” (FINAM) and “Fundo de Investimento do Nordeste”
(FINOR) - Financial support for the development of the Amazon and Northeast Regions.
Financial support: Risk capital investment oper ated by Banco da Amazônia (BASA) or Banco
do Nordeste do Brasil (BNB), with funding draw n from the Amazonia Investment Fund – FINAM or
Northeast Investment Fund – FINOR, respectively.  The investments made are matched with primary
debenture issues with real and floating guaranties put forward by the beneficiary company.
Conversion of debentures into stock only occurs after the project is implemented, as required by rules
and procedures specified in law. The shares are nonvoting, according to Brazilian corporate law.
Subscription is distributed at a ratio of 70 per cent in convertible debentures and 30 per cent in
nonconvertible debentures.
Origin of the resources: businesses are entitled to deduct 18 per cent of their income tax to be
invested in the Amazon Region or Northeast Region, with the option of channelling these fundsG/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 12
through FINAM or FINOR for investment in projects already approved by SUDAM or SUDENE (art.
5 of Law no. 8,167/91) or in their own previously  approved projects (art. 9 of the same law).
2. Period covered by the notification
January 1996 to December 1999.
3. Policy objective and/or purpose of the subsidy
The benefits are granted to any enterprise lo cated in the Legal Amazon or Northeast Regions
that can generate jobs and income for the regions and promote regional development.
4. Background and authority for the subsidy (including identification of the legislation under
which it is granted)
The financial support, designed to induce economic activity in the Legal Amazon and Northeast
Regions, is administered by SUDAM and SUDENE, which are autonomous federal entities linked to theMinistry of National Integration - MI (Provisional Measure 1911, dated 29 June, 1999).
BASA and BNB, are financial agents that ch annel revenues destined to FINAM and FINOR.
They also participate in the implementation of the in centives policy.  The resources remain in deposits in
these banks awaiting authorization for release from SUDAM and SUDENE.  The Secretariat of Federal
Revenue and the Secretariat of the National Treasury are the Ministry of Finance entities charged with
the administration of the FINAM and FINOR mechanis ms regarding taxation, collection of taxes, and
channelling of resources.
Main legislation: Laws 8167, dated 16.01.91; 9532, dated 10.12.97, and 9808, dated 20.07.99.
5. Form of the subsidy (i.e. grant. Loan. Tax concession)
Risk capital investments through primary subscription of debentures convertible into stock, at
a ratio of 70 per cent in convertible debentures and 30 per cent in nonconvertible debentures.
6. To whom and how the subsidy is provided (whe ther to producers, to exporters, or others:
through what mechanisms: whether a fixed or fluctuating amount per unit: if the latter, how
determined)
The beneficiaries are legal entities that receive incentives to implement a project classified as
relevant to the region.
The project, to be implemented with FINAM and FINOR financial assistance, should involve
activities that foster regional development.G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 13
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous
year). Where provision of per unit subsidy information (for the year covered by the
notification, for the previous year, or both) is not possible, a full explanation
FINOR/FINAM – Fiscal benefits (in lending)
(R$ thousand)
YEARS 1996 1997 1998 1999
FINAM 156,646 257,262 345,884 401,930
FINOR 402,065 468,043 410,543 329,595
Source: Secretaria do Tesouro Nacional
8. Duration of the subsidy and/or any other time limit s attached to it, including data of inception/
commencement
1. The financial benefits were created by Decree 1376 of 12 December 1974.  The benefit has
been granted since 1975.  Expiration is scheduled for December 2013 (Law 9532/97).
9. Statistical data permitting an assessment of th e trade effects of the subsidy. The specific and
scope of such statistics is left to the judgment of the notifying Member. To the extent
possible, relevant an/or determinable, however, it  is desirable that such information include
statistics of production, consumption, imports and exports of the subsidized product (s) or
sector (s)
Use of Resources by States - FINAM
Year 1996 1997 1998 1999
State Amount % Amount % Amount % Amount %
Acre 6,012 2.5 2,018 0.7 3,598 1.0 3,993 1.0
Amapá 41,568 17.0 50,953 18.3 47,767 13.4 4,579 1.4
Amazonas 5,615 2.3 13,137 4.7 14,870 4.2 18,130 4.8
Maranhão (*) 6,754 2.8 16,997 6.1 20,765 5.8 15,561 4.1
Mato Grosso 73,976 30.2 83,930 30.1 87,417 24.5 114,358 30.6
Pará 70,248 28.7 64,391 23.1 119,085 33.4 149,891 40.0
Rondônia 6,376 2.6 5,810 2.1 13,657 3.8 8,063 2.1
Roraima 767 0.3 1,646 0.6 532 0.1 942 0.2
Tocantins 33,737 13.8 39,672 14.2 49,298 13.8 59,354 15.8
Total 245,053 100.0 278,554 100.0 356,989 100.0 374,871 100.0
Source:  DLA/DAI/SUDAM
(*) Area of Maranhão under Sudam JurisdictionG/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 14
Use of Resources by Productive Sector - FINAM
R$ thousands
Years 1996 1997 1998 1999
Sectors Amount % Amount % Amount % Amount %
Agroindustrial 40,329 16.5 60,012 21.5 77,952 21.8 115,947 30.9
Agricultural 65,334 26.7 61,900 22.2 107,196 30.0 105,216 28.1
Industrial 115,036 46.9 113,771 40.8 152,895 42.8 115,475 30.8
Basic Services 24,354 9.9 42,871 15.4 18,946 5.3 38,233 10.2
Total 245,053 100.0 278,554 100.0 356,989 100.0 374,871 100.0
Source:  DLA/DAI/SUDAM
Use of Resources by State - FINOR
R$ thousands
Year 1996 1997 1998 1999
State Amount % Amount % Amount % Amount %
Alagoas 25,953 6.1 13,781 3.4 12,435 3.4 11,821 4.7
Bahia 47,263 11.2 52,277 12.7 38,676 10.7 35,403 14.0
Ceará 63,705 15.1 71,701 17.5 51,795 14.3 37,952 15.0
Maranhão 45,833 10.8 49,662 12.1 30,978 8.5 18,241 7.2
N/ Minas Gerais 31,434 7.4 15,312 3.7 43,379 12.0 13,426 5.3
Paraíba 64,932 15.4 44,892 10.9 38,697 10.7 26,313 10.4
Pernambuco 76,503 18.1 79,671 19.4 77,051 21.2 66,149 26.2
Piauí 28,743 6.8 38,312 9.3 13,091 3.6 7,162 2.8
R. G. do Norte 23,750 5.6 27,988 6.8 36,123 10.0 15,391 6.1
Sergipe 14,693 3.5 16,986 4.1 20,776 5.7 20,756 8.2
Total 422,809 100.0 410,582 100.0 363,000 100.0 252,614 100.0
Source:  SUDENE
VI. NE/FNO/FCO
1. Constitutional Funds for the Financing of the Northeast, the North and the Midwest
Regions
1. Title the subsidy programme if relevant or brief description or identification of the subsidy
“Fundos Constitucionais de Financiamento do Nordeste, do Norte e do Centro-Oeste”
(FNE/FNO/FCO): Constitutional Funds for the financin g of productive sectors in the North, Northeast
and Midwest Regions.
2. Period covered by the notification
January 1996 to December 1999.G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 15
3.  Policy objective and/or purpose of the subsidy
To contribute to the social and economic deve lopment of the North, Northeast, and Midwest
Regions, through federal financial institutions of regional character, by means of financing programmesfor the productive sectors, in conformity w ith the respective regional development plans.
4. Background and authority for the subsidy (including identification of the legislation under
which it is granted)
Law 7827 of 27 September 1989, which regulates Article 159, paragraph I, letter “c”, of the
Federal Constitution, creates the FNO, FNE and FCO.   The administration of each of the Constitutional
Funds for financing the North, Northeast and Midwes t is distinct, autonomous, duly complying with the
responsibilities defined in law.  It is exercised by the following entities (art. 13 of Law 7827/89, as
amended by Provisional Measure 1988-16, dated 13 January 2000, currently Provisional Measure
2035-24, dated 25.08.2000):
(a) Deliberative Council of the Development Authorities of the North, Northeast Regions and the
Deliberative Council of the Central-West Constitutional Financing Fund
The FNE, FNO and FCO Deliberative Councils have authority to approve the financing
programmes of each Fund, define measures to ensure the compatibility of these investmentswith the activities of other regional development entities, and evaluate the results obtained.
They are charged with determining the adjustment measures deemed necessary to comply
with the approved guidelines (art. 14 of Law 7827/89, as amended by Provisional Measure
1846-10/99, currently Provisional Measure 2035-24, dated 25.08.2000.
(b) Ministry of National Integration
According to articles 14 and 20 of Law 9649, dated 20 May 1998, as amended by Provisional
Measures 1911, dated 29.06.99, and 1999-15, dated 11.02.2000, the Ministry of  National
Integration has the following responsibilities:
/g216 Define guidelines and priorities for investments, monitoring, and evaluation of the
financing programmes that are mentioned in line “c” of indent I of art. 159 of the Federal
Constitution.
/g216 Define rules to ensure compliance on the part of the financing programmes operated
through Constitutional Funds and the budget programme for the Regional InvestmentFunds.
(c) Regional financial institutions and Banco do Brasil S.A.
The financing agents of the Constitutional Financing Funds are:
Banco da Amazônia S.A. – FNO;
Banco do Nordeste do Brasil S.A. – FNE; and
Banco do Brasil S.A. – FCO.
According to art. 15 of Law 7827/89, as amended by Provisional Measure 1988-16/2000
(currently, Provisional Measure no. 2,034-24, dated 25.08.2000), the responsibilities of each of the
federal financial institutions and Banco do Brasil S.A. are as follows:G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 16
/g216 invest resources and implement credit policy according to the terms of the programmes
approved by the respective Deliberative Councils;
/g216 define  specific operational norms, procedures and conditions for carrying out  the
banking activities involved, duly observing, among other factors, the guidelines set out in
the financing programmes approved by the Deliberative Councils of each Fund;
/g216 classify proposals within the various cost categories and approve credits;
/g216 formalize contracts involving the onlending of resources to other accredited financial
institutions, based on art. 9 of Law 7827/89;
/g216 provide full reports on the results achieved, performance, and status of the funding and
investments to the Ministry of National Integration that, in turn, will submit the reports to
the respective Deliberative Councils; and
/g216 perform other activities inherent to the investment of resources and recovery of credits.
5. Form of the subsidy (i.e. grant. Loan. Tax concession)
Credit operations based on resources of the Constitutional Financing Funds are, as of
13.01.2000, subject to the charges defined in Provisional Measure no. 1,988-16, dated
13 January 2000 (currently, Provisional Measure no. 2,035-24, dated 25.08.2000), with rates between
5 per cent and 16 per cent per year.
In the period from January 1996 to 12 January 2000, loans granted through the use of
Constitutional Fund resources were subject to the following financial charges:
YEAR BASIC
CHARGEADDITIONAL CHARGE
Interest per year
1996 to 1997 TJLP 6% (*)
Up to 30.11.98 TJLP 6% (*)
From 01.12.98 to
12.01.2000IGP-DI 8% (**)
(*) rebate of up to 60 per cent of total charges;
(**) rebate of up to 60 per cent of additional charges.
6. To whom and how the subsidy is provided (w hether to producers, to exporters, or others;
through what mechanisms; whether a fixed or fluctuating amount per unit; if the latter, how
determined)
According to the terms of art. 4 of Law 7827, the beneficiaries of  loans backed by
Constitutional Fund resources are producers and companies, whether individual persons or legal
entities, as well as production cooperatives, that carry on productive activities in the crop/livestock,mineral, industrial and agro-industrial sectors of the North, Northeast and Central-West Regions.
7. Subsidy per unit, or in cases where this is not possible, the total amount or the annual amount
budgeted for that subsidy (indicating, if possible, the average subsidy per unit in the previous
year). Where provision of per unit subsidy information (for the year covered by the
notification, for the previous year, or both) is not possible, a full explanation
Available data is found in answer to question 9.G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 17
8. Duration of the subsidy and/or any other time limit s attached to it, including data of inception/
commencement
Loans backed by Constitutional Financing Fund resources have been granted since
September 1989.
9. Statistical data permitting an assessment of the trade effects of the subsidy.  The specific and
scope of such statistics is left to the judgment of the notifying Member.  To the extent
possible, relevant an/or determinable, however, it  is desirable that such information include
statistics of production, consumption, imports and exports of the subsidized product (s) or
sector (s)
See tables below.
Centre-West Financing Constitutional Fund - FCO
Number of Operations (OP) and Values Contracted (VC)
by Programme
Updated Figures
1989/1998
VC in R$ thousand
Year 1989 1990 1991 1992 1993 1994
Programme OP VC OP VC OP VC OP VC OP VC OP VC
"Rural" 5,566 37,902 339 172,653 2,006 143,829 1,413 91,175 3,851 310,640 2,154 176,412
"PAPRA" 4,088 8,943 5,663 22,280 10,561 34,264
"Industrial
"2,240 59,510 220 100,771 115 40,359 123 65,496 104 65,254
"Turismo" 5 1,292 7 1,359 4 647 4 2,174
"Infra-
Estrutura"358 19,670 27 42,311 2 521 8 1,291 2 2,644
Total 5,566 37,902 2,937 251,833 2,258 288,203 5,625 142,357 9,649 400,354 12,825 280,747G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 18
VC in R$ thousand
Year 1995 1996 1997 1998 TOTAL
Programme OP VC OP VC OP VC OP VC OP % VC %
"Rural" 2,935 106,269 5,453 166,536 4,290 165,520 5,577 268,592 33,584 27.7 1,639,528 67.0
"PAPRA" 8,739 23,548 9,320 23,500 14,342 38,415 21,407 43,734 74,120 61.1 194,684 8.0
"Industrial" 211 37,113 75 17,381 64 11,800 123 10,995 3,275 2.7 408,679 16.7
"Turismo" 10 2,565 14 3,346 14 2,426 11 3,767 69 0.1 17,576 0.7
"Infra-
Estrutura"11 696 1 64 10 2,555 7 489 426 0.4 70,241 2.9
"PRONAF" 316 4,350 6,147 74,240 3,275 37,375 9,738 8.0 115,964 4.7
Total 11,906 170,191 15,179 215,177 24,867 294,956 30,400 364,952 121,212 100.0 2,446,672 100.0
Source:  Banco do Brasil report
Values updated by BTN and by TR - prices of November 99.
01 0,00020,00030,00040,00050,00060,00070,00080,000
"Rural" "Industrial" "Infra-
Estrutura"Number of Operations by Programme
nº of 
operations
Program0200,000400,000600,000800,0001 ,000,0001 ,200,0001 ,400,0001 ,600,0001 ,800,000
"Rural" "Industrial" "Infra-
Estrutura"Values Contracted by Programme
R$ 
ProgramG/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 19
Centre-West Financing Constitutional Fund - FCO
Number of Operations (OP) and Values Contracted (VC) by Programme
Updated Figures 1989/1998
VC in R$ thousand
Year 1989/1998 1999 TOTAL
Programme OP % VC % OP % VC % OP % VC %
"PAPRA" 74,120 61.1 196,583 8.0 17,013 89.5 61,428 36.6 91,133 65.0 258,011 9.8
"PRONAF" 9,738 8.0 117,095 4.7 647 3.4 5,141 3.1 10,385 7.4 122,236 4.6
"Rural" 33,584 27.7 1,655,517 67.0 1,262 6.6 78,140 46.5 34,846 24.8 1,733,657 65.7
"Industrial" 3,275 2.7 412,664 16.7 50 0.3 20,403 12.1 3,325 2.4 433,067 16.4
"Infra-Estrutura" 426 0.3 70,926 2.9 1 0.0 104 0.1 427 0.3 71,030 2.7
"Giro/custeio" 0 0.0 0 0.0 33 0.2 1,552 0.9 33 0.0 1,552 0.1
"Turismo" 69 0.1 17,747 0.7 9 0.0 1,126 0.7 78 0.1 18,873 0.7
"PRONATUREZA" 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0 0 0.0
Total 121,212 100.0 2,470,532 100.0 19,015 100.0 167,894 100.0 140,227 100.0 2,638,426 100.0
Source: Banco do Brasil report.
Values updated by BTN and by TR - prices of march/2000.G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 20
Values Contracted by Program
1989/1999
0200,000400,000600,000800,0001,000,0001,200,0001,400,0001,600,0001,800,000
"PAPRA" "PRONAF" "Rural" "Industrial" "Infra-Estrutura" "Giro/custeio" "Turismo" "PRONATUREZA"020,00040,00060,00080,000100,000
"PAPRA" "PRONAF" "Rural" "Industrial" "Infra-Estrutura" "Giro/custeio" "Turismo" "PRONATUREZA"Number of Operations by Programme
nº of operations
Program
ProgramR$ thousandG/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 21
Centre-West Financing Constitutional Fund - FCO
Balance of Aplications by Programme and Federative Unit
As of  31.12.1999
R$ thousand
                            UF DF GO MT MS Total %
Programme
"PAPRA" 1,772 26,667 97,180 53,431 179,050 9.9
"PRONAF" 434 24,291 70,490 13,497 108,712 6.0
"PRONATUREZA" -- -- --
"Rural/
Integração"98,326 410,897 409,581 227,767 1,146,571 63.5
Subtotal Rural 100,532 461,855 577,251 294,695 1,434,333 79.4
"Industrial/
Agroindustrial"111,303 90,368 28,616 79,279 309,566 17.2
"Infra-Estrutura" 523 897 32,903 1,216 35,539 2.0
"Turismo" 27 6,945 1,308 14,290 22,570 1.3
"Capital de Giro/
custeio"255 1,923 214 74 2,466 0.1
Total 212,640 561,988 640,292 389,554 1,804,474 100.0
Source: Management information from FCO, supplied by Banco do Brasil.
gp p y
Balance of Aplications
Program and Federative Unit y
050,000100,000150,000200,000250,000300,000350,000400,000450,000
"PAPRA" "PRONAF" "PRONATUREZA" "Rural/
Integração""Industrial/
Agroindustrial""Infra-Estrutura" "Turismo" "Capital de Giro/
custeio"
DF GO MT MSR$ mil
ProgramG/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 22
Northern Financing Constitutional Fund - FNO
Number of Operations (OP) and Values Contracted (VC)
by Programme
Updated Figures
1989/1998
VC in R$ thousand
Year 1989 1990 1991 1992 1993 1994
P r o g r a m m e O PV C O P V C O P V C O P V C O P V CO PV C
"Rural" 14 711 2,170 171,482 1,090 58,763 1,389 105,256 1,253 87,372 8,243 239,369
"Industrial" 2 1,818 177 54,747 164 23,861 50 51,905 46 21,420 66 54,629
"Especial" 94 6,410 63 23,693 10,416 60,139 12,365 153,420
"Turismo"
Total 16 2,529 2,347 226,229 1,348 89,034 1,502 180,854 11,715 168,931 20,674 447,418
VC in R$ thousand
Year 1995 1996 1997 1998 TOTAL
Programme OP VC OP VC OP VC OP VC OP % VC %
"PROCERA" 7,867 37,943 7,867 8.9 37,943 2.0
"PRONAF" 11 7 1 0.0 17 0.0
Other 2,548 150,824 14,424 163,176 6,699 60,777 7,660 108,851 45,490 51.7 1,146,581 61.9
Sub-total Rural 2,548 150,824 14,424 163,176 6,699 60,777 15,528 146,811 53,358 60.6 1,184,541 63.9
"Industrial" 83 35,266 51 13,362 34 5,528 94 25,650 767 0.9 288,186 15.5
"Agro-
industrial"63 , 0 2 3 6 0.0 3,023 0.2
"Especial" 10,902 128,780 11 4,025 33,851 38.5 376,467 20.3
"Turismo" 2 834 1 210 3 0.0 1,044 0.1
Total 13,533 314,870 14,486 180,563 6,735 67,139 15,629 175,694 87,985 100.0 1,853,261 100.0
Source: Banco da Amazônia activities report.
Values updated by BTN and by TR - prices of november/99.G/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 23
Northern Financing Constitutional Fund - FNO
VC in R$ thousand
Year
Program OP % VC % OP % VC % OP % VC %
"PROCERA" 7,867 8.9 38,313 2.0 2,725 11.8 13,278 3.7 10,592 9.5 51,591 2.3
"PRONAF" 1 0.0 17 0.0 1,310 5.7 6,270 1.8 1,311 1.2 6,287 0.3
"Rural" 45,490 51.7 1,157,762 61.8 18,935 81.8 243,731 68.3 64,425 58.0 1,401,493 62.9
"Industrial" 767 0.9 290,996 15.6 167 0.7 79,805 22.4 934 0.8 370,801 16.6
"Agroindustrial" 6 0.0 3,052 0.2 9 0.0 6,959 1.8 15 0.0 10,011 0.4
"Especial" 33,851 38.5 380,138 20.3 33,851 30.5 380,138 17.1
"Turismo" 3 0.0 1,056 0.1 10 0.0 6,966 2.0 13 0.0 8,022 0.4
Total 87,985 100.0 1,871,334 100.0 23,156 100.0 357,009 100.0 111,141 100.0 2,228,343 100.0
Source: Banco da Amazônia activities
Values updated by BTN and by TR - prices o f
Number of Operations by
1989/1999
Values Contracted b y
1989/1999TOTALNumber of Operations (OP) and Values Contracted (VC)
by Programme
Updated Figures
1989/1999
1989/1998 1999
0200,000400,000600,000800,0001,000,0001,200,0001,400,0001,600,000
"PROCERA" "PRONAF" "Rural" "Industrial" "Agroindustrial" "Especial" "Turismo"
010,00020,00030,00040,00050,00060,00070,000
"PROCERA" "PRONAF" "Rural" "Industrial" "Agroindustrial" "Especial" "Turismo"nº of
operations
Program
ProgramR$ thousandG/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 24
Northern Financing Constitutional Fund - FNO
Balance of Applications by Programme and Federative Unit
As of 31.12.99
Programme
UFRural Industrial Total %
Acre 54,731 1,313 56,044 3.2
Amapá 47,447 7,386 54,833 3.1
Amazonas 75,643 26,347 101,990 5.8
Para 720,888 151,830 872,718 49.6
Rondõnia 177,177 17,982 195,159 11.1
Roraima 73,968 483 74,451 4.2
Tocantins 334,648 68,631 403,279 22.9
Total 1,484,502 273,972 1,758,474 100
0100,000200,000300,000400,000500,000600,000700,000800,000R$ mil.
Acre Amapá Amazonas Para Rondõnia Roraima Tocantins
UFBalance of Applications
Rural IndustrialG/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 26
Northeast Financing Constitutional Fund - FNE
Number of Operations (OP) and Values Contracted (VC)
by Programme
Updated Figures
1989/1999
VC in R$ thousand
Year 1989/1998 1999 TOTAL
Programme OP % VC % OP % VC % OP % VC %
"Programa da
Terra"104,680 19.1 454,495 5.3 41,798 48.5 88,947 13.9 146,478 23.1 543,442 5.9
"Rural" 5,299 1.0 148,018 1.7 4,580 5.3 85,187 13.2 9,879 1.6 233,205 2.5
"Especiais" 94,802 17.3 441,447 5.2 37,742 43.8 328,381 51.2 132,544 20.9 769,828 8.3
Other Programs 278,070 50.8 4,407,966 51.3 0 0.0 0 0.0 278,070 43.9 4,407,966 47.8
Subtotal Rural 482,851 88.2 5,451,926 63.5 84,120 97.6 502,515 78.3 566,971 89.5 5,954,441 64.6
"Agroindustrial
"24,973 4.6 470,649 5.5 369 0.4 5,443 0.9 25,342 4.0 476,092 5.2
"Industrial" 39,588 7.2 2,595,783 30.2 1,735 2.0 118,561 18.5 41,323 6.5 2,714,344 29.4
"Turismo" 219 0.0 72,804 0.8 28 0.0 14,895 2.3 247 0.0 87,699 0.9
Total 547,631 100.0 8,591,162 100.0 86,252 100.0 641,414 100.0 633,883 100.0 9,232,576 100.0
Source: Banco do Nordeste do Brasil report.
Number of Operations by Programme
1989/1999
0100,000200,000300,000400,000500,000600,000
"Programa da Terra" "Rural" "Especiais" Other Programs Subtotal Rural "Agroindustrial" "Industrial" "Turismo"No. of operations
ProgrammeG/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 27
Values Contracted by Programme
1989/1999
01,000,0002,000,0003,000,0004,000,0005,000,0006,000,000
"Programa da Terra" "Rural" "Especiais" Other Programs Subtotal Rural "Agroindustrial" "Industrial" "Turismo"
Northeast Financing Constitutional Fund - FNE
Balance of Aplications by Programme and Federative Unit
As of 31.12.99
R$ thousand
Programme Programas Especiais
UF Rural Industrial Agroindustrial Turismo Programa
da TerraOutros Total %
Alagoas 181,629 117,123 36,919 1,179 30,273 59,323 426,447 6.5
Bahia 732,097 271,965 257,590 23,447 42,709 158,505 1,486,312 22.6
Ceará 232,001 601,603 22,538 5,688 31,209 89,945 982,984 15.0
Maranhão 237,688 95,673 55,934 4,834 49,241 66,250 509,620 7.8
Minas Gerais 239,043 120,705 46,607 1,154 8,839 79,184 495,531 7.6
Paraíba 136,997 126,882 16,182 2,565 23,720 76,056 382,402 5.8
Pernambuco 357,465 448,626 147,663 3,022 28,848 83,138 1,068,763 16.3
Piauí 282,719 33,654 43,320 10,408 32,120 111,928 514,149 7.8
Rio Grande do
Norte229,963 45,688 10,529 7,572 20,398 35,047 349,197 5.3
Sergipe 207,792 28,946 4,869 3,415 31,487 72,836 349,345 5.3
Total 2,837,394 1,890,865 642,151 63,284 298,844 832,212 6,564,750 100.0
Source: Management information from FNE, supllied by Banco do Nordeste do Brasil.
The balance of aplications encompass credit operation (6.438.410 Mil), debtors by transfers (109.371 Mil), PROAGRO
receiveables (10.032 Mil) and other values
and goods (6.937 Mil).R$ thousand
ProgrammeG/SCM/N/25/BRA, G/SCM/N/38/BRA,
G/SCM/N/48/BRA, G/SCM/N/60/BRA
Page 28
(*) including operation balance (value not informed) carried out in Espírito Santo State.
Balance of Applications
0100,000200,000300,000400,000500,000600,000700,000800,000
Alagoas Bahia Ceará Maranhão Minas Gerais Paraíba Pernambuco Piauí Rio Grande
do NorteSergipe
Rural Industrial
Agroindustrial Turismo
Programa Es pecial (Programa da Terra ) Programa Es pecial (Outros )R$ thousand
UF
__________