December 18, 2018 |
Economic recovery could mean more loans for imports, although exports could remain flat, sources say
Brazil's trade finance market will likely grow 5% next year as an economic recovery boosts imports enough to offset sluggish exports, LatinFinance has heard.
As Brazil's economy improves, and as banks benefit from proposed tax cuts, the spreads on trade finance loans could come down next year, he said.
Brazilian export volumes will likely grow between 3% and 6% in 2019, due to sustained demand for oil, iron ore and soy beans, but export earnings will post lower growth on falling energy prices, Adams said.
For a banker in New York, the economic recovery will lead to a rise in trade finance loans in Brazil. "The market has been waiting to reposition in Brazil," he said.