Brazil central bank eases reserve requirements on term deposits
BRASILIA Oct 15 (Reuters) - The Brazilian central bank on Wednesday eased reserve requirements on term deposits for commercial banks that step up short-term corporate loans, in a move aimed at stimulating economic growth.
With the changes in requirements policymakers are seeking to ease potential blockages in the availability of short-term credit for companies of all sizes at a time when borrowing costs are hovering at their highest levels in almost three years.
In recent months, leading default indicators have showed a slight uptick in loan delinquencies at small- and mid-sized companies, which are struggling with four years of weak growth, rising costs and narrowing profit margins.
Reuters reported on Oct. 8 that the government was considering easing reserve requirement rules on term deposits for commercial banks in a bid to free up lending for infrastructure and other investment projects. (Reporting by Luciana Otoni; Writing by Alonso Soto and Guillermo Parra-Bernal)
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