SAO PAULO , Jan. 31, 2013 (RISI) -
Brazil's National Development Bank (BNDES) funding to pulp and paper companies hit Real 3.97 billion ($ 1.95 billion) in 2012, a 215% raise over 2011's figures. According to a document released by the bank last week, the pulp and paper sector was the third in the country's industrial sector that most benefited from BNDES's financing last year, receiving 11% of all cash lent to industries. The bank's total funding for industries was Real 32 billion.
BNDES has been required by almost all Brazilian companies to finance their expansion plans, more recently including Eldorado's pulp project and Suzano's new pulp mill under construction in Maranhão state. The bank is also Fibria's major shareholder, with a 30.38% stake in the company.
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