Sao Paulo: BNDES, state development bank of Brazil has come forward to assist the ethanol sector in the country that is reeling under financial stress due to coronavirus pandemic.
According to the news report, the bank has approved the credit program to help support the country’s ethanol sector. BNDES said in the statement that the credit, linked to ethanol stocks, could reach 3 billion reais ($586 million) with the participation of commercial banks.
Ethanol producers are under financial stress due to lockdown imposed in the country as well as in the world to control the spread of coronavirus. The lockdown resulted in the least movement of vehicles leading to the reduction in the use of fuel and ultimately lowered the sale of ethanol. Brazil is one of the top producers of ethanol in the world.
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