Brazil’s BNDES halts overseas disbursements amid graft probe

By Rodrigo Viga Gaier | Reuters

Oct 11 State development bank BNDES has temporarily frozen loan disbursements worth $4.7 billion for several major engineering firms ensnared in Brazil’s biggest corruption investigation.

The suspension was enacted in May but only made public on Tuesday by Ricardo Ramos, director of the bank’s exports division. The move blocks funding for builders OdebrechtSA , Grupo OAS SA, Construtora Queiroz Galvão SA, Construtora Camargo Corrêa SA and Andrade Gutierrez SA.

The decision affects 25 projects worth $7 billion, of which $2.3 billion have already been paid out by BNDES in projects in Argentina, Cuba, Venezuela, Guatemala, Honduras, the Dominican Republic, Angola, Mozambique and Ghana, Ramos said.

BNDES’ funding is a target of federal investigators leading the probe at state firms, especially Petróleo Brasileiro SA.

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