RIO DE JANEIRO, Aug 19 (Reuters) - Brazilian Finance Minister Joaquim Levy said on Wednesday that plans by state-run lenders to extend loans to ailing sectors of the economy are designed to meet market demand and do not pose risk to the banks or broader efforts to restore economic growth.
“The most special (credit) line is for (financing) public transportation,” Levy told reporters in Rio de Janeiro. “The others are lines based on commercial interest. It’s an arrangement that does not pose major risks.”
Shares of state-controlled Banco do Brasil sank 5 percent after the nation’s largest bank by assets on Wednesday pledged to extend 9 billion reais in credit to a “wide array of productive sectors” affected by Brazil’s economic downturn. (Reporting by Rodrigo Viga Gaier, writing by Walter Brandimarte Editing by W Simon)