Significant financial institution in Brazil stops providing funds to domestic arms industry.

SAO PAULO — Banco do Brasil, one of the largest banks in Latin America, has announced that it will no longer use its own resources to finance defense companies. The bank, which is owned by the Brazilian federal government, plays a significant role in the domestic industry by guaranteeing exports for companies. However, it has decided to stop contracting new operations for the defense sector, citing credit policies and social responsibility as guiding factors.

This decision will affect the funds from Proex, a federal government mechanism that provides resources for Brazilian companies exporting goods and services. Part of the money is supplied by Brazil’s National Treasury, and the rest by Banco do Brasil. This move could have a significant impact on defense companies in the country, as they may no longer have the capacity to export without the financial tools and guarantees provided by the bank.

The Defense Ministry has expressed concern over this decision and has met with Banco do Brasil’s president to discuss the issue. The bank has promised to study the possibility of expanding the scope of Proex to meet the credit needs of the defense sector. The ministry has also been working with other government agencies to find alternative credit options and guarantees for local defense companies.

This decision by Banco do Brasil is seen as a serious one by industry experts, as it could have a catastrophic effect on the defense sector in Brazil. Without access to financial tools and guarantees, it may be difficult for defense companies to close contracts and continue their operations. The impact of this decision remains to be seen, but it is clear that it will have a significant impact on the defense industry in Brazil.  

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