Brazil’s infrastructure sector – including its wind and solar industries – could face more variable and expensive long-term lending arrangements from National Development Bank (BNDES) under changes to how rates are calculated, analysts warned.
In late March, the Brazilian Central Bank announced that from 2018 it would gradually abolish the long-established TJLP rate – set every three months according to a relationship between the average cost of long-term loans abroad, the country’s sovereign risk and the yearly inflation target of 4.5%.
