Lula Government Announces New Credit for Industry

The government of Luiz Inácio Lula da Silva (PT) announced a credit of R$ 12 billion for the purchase of new machinery for the industrial sector, which takes effect on Monday (25). Of this total, R$ 10 billion comes from BNDES (National Bank for Economic and Social Development) and R$ 2 billion from Finep (Financier of Studies and Projects). Dubbed Industry 4.0 Credit, the fund will be used to purchase machinery and equipment to modernize the Brazilian industrial park.

The interest rates for the credit will range from 7.5% to 8%, plus the spread. According to Vice President and Minister of Industry, Trade and Services, Geraldo Alckmin, this alternative is considered more cost-effective and is expected to promote industrial development and increase competitiveness. Alckmin stated, ‘The government is stimulating the renewal of the industrial park, instead of depreciating the purchase of machinery and equipment over 15 years, you can depreciate it over two years. It’s a strong stimulus for industrial renewal and capital goods with lower interest rates.’

The BNDES financing will be a mix of 60% TR (Referential Rate) and 40% market rate. Finep complements the action by allocating the R$ 2 billion credit to its Technological Diffusion line, exclusively for companies needing to modernize their industrial park located in the North, Northeast, and Midwest regions.

Mercadante, the president of the bank, stated, ‘With the inflation we have, this is an extremely competitive interest rate in any economy in the world. So it’s a great boost, a great stimulus to buy machinery.’ The measure stems from Resolution No. 5,232, from July of this year, by the CMN (National Monetary Council), which increased the allocation to up to 2.5% of the Worker Support Fund balance.

The credit is also part of the Nova Indústria Brasil policy, the government’s industrial development policy that completed one year in 2025. The BNDES participation is part of the More Production Plan, a branch of the program in which financial institutions provide resources. Mercadante also reiterated the support package for companies affected by the 50% tariff imposed on Brazilian products by US President Donald Trump, announced by the government on August 12.