...Development Agencies as Credit Alternative There are 16 development agencies in Brazil. Given increased credit restrictions by the banks, development agencies have emerged as alternatives, even though certain eligibility limitations exist for borrowers. On a consolidated basis, agencies recorded strong growth in the last three quarters of 2014, until fourth-quarter 2014. Low Profitability Although Stable Agencies aim to assist their target public and maintain focus on development purpose (small- and medium-sized companies, municipalities and micro credit). They regularly operate with lower interest and longer terms compared with those offered by the traditional credit market. Political Influences It is necessary for these agencies to be public companies, and they submit their accounts to the audit court of each state. Fitch Ratings believes that, as with other public financial institutions, the development agencies can be subject to political influence by nature. High Capitalization, but...
