Brazil's Development Bank announces $240 million loan to FIAT car maker

The National Bank for Economic and Social Development (BNDES) announced it is going to provide $240 million in loans for Brazil's operations of Italy car maker FIAT for its Brazil operations.

The funds will be used to develop new engines and vehicles, and upgrade assembly lines with new technologies capable of building powerful, low-fuel vehicles and engines with better energy efficiency, according to a release from the BNDES press office on Monday (Jan. 5). The project will also help promote the use of domestically-made parts in engines. The financing period runs until December 2016.

The value announced Monday is part of a $2.307 billion loan agreed by FIAT and BNDES between March 2011 and December 2014.

Out of this total, $480 million was provided in 2011 to help develop and upgrade assembly lines resulting in new models and engines and support a community outreach project called “Tree of Life” (“Árvore da Vida”). In 2012, the bank set aside $895 million for a new plant in Goiana, Pernambuco.

FIAT was the first car maker to provide a line of commercial vehicles for micro, small and medium enterprises via a BNDES Card.

Translated by Mayra Borges