Petrobras graft hits profits at Brazil development bank

GMT 00:03 2015 Tuesday ,31 March

Arab Today, arab today Petrobras graft hits profits at Brazil development bank

Brazil's state-run National Development Bank posts healthy profits
Brasilia - AFP

Brazil's state-run National Development Bank posted healthy profits Monday, but indicated losses of some $800 million on its stock in Petrobras, whose market value has plunged on a graft scandal and lower oil prices.
The BNDES bank, which lends to underpin major projects aimed at social development across a range of sectors, said it posted a liquid profit of 8.594 billion reais ($2.7 billion), up 5.44 percent for the third best result in its 63-year history.
But the result was marred by its exposure to a political kickbacks scandal at Petrobras, with dozens of politicians and officials from some of Brazil's biggest firms under investigation for a scheme that allegedly moved some $3.8 billion over a decade.
In a statement, BNDES put its Petrobras-related loss at $800 million.
The scandal, which has rocked the government, has wiped tens of billions of dollars off Petrobras' market value and forced it to delay publishing externally audited accounts from last year.
BNDES loans have allowed Brazilian construction firms to roll out major infrastructure projects across Latin America -- but many of the companies are now embroiled in the Petrobras scandal.

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