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(Adds official's comments)
BRASILIA, Feb 11 (Reuters) - The Brazilian government will likely exercise its option to repurchase 2040 global bonds starting in August of this year, the country's Treasury undersecretary Paulo Valle said on Wednesday.
Valle said that "all indicates" the Treasury will exercise that option to retire that global debt, which has an outstanding amount of $1.2 billion.
Valle also said the government has no need to tap international markets to pay its current foreign debt as it has enough dollars in hand.
He added that the government will wait for the right moment to issue debt in foreign markets that are experiencing more turbulence this year.
In the release of its annual debt financing plan, the Treasury said the federal government needs net financing of 487.7 billion reais ($169.90 billion) this year.
In a sign of fiscal restraint, Valle said the government has no plans to issue debt to finance state-run companies and development bank BNDES this year.
$1 = 2.8705 Brazilian reais Reporting by Luciana Otoni; Writing by Alonso Soto Editing by W Simon