Brazil to use forex reserves to aid companies

Thu Feb 5, 2009 12:12pm EST
BRASILIA, Feb 5 (Reuters) - Brazil has enough foreign currency reserves to help compensate for a drop in international credit lines to the country, Central Bank President Henrique Meirelles said on Thursday.
The bank plans to offer credit lines in dollars, using funds from its reserves, to domestic banks on Feb. 27, March 13 and March 27. The lines, aimed at helping companies with difficulties raising cash to roll over foreign obligations, may total $20 billion, Meirelles said.
Companies have an estimated $36 billion in foreign debt obligations in the period between October 2008 and December 2009, he said. (Reporting by Isabel Versiani; Writing by Elzio Barreto; Editing by James Dalgleish)