Banks want higher rates in Brazil power sector loan, sources say
By Guillermo Parra-Bernal and Leonardo Goy
SAO PAULO, March 6 (Reuters) - Brazil's three biggest private-sector banks are willing to extend a 3.15 billion-real ($1 billion) loan to bolster the finances of the nation's power distributors as long as borrowing costs reflect higher risks and a longer maturity, three sources with direct knowledge of the negotiations said on Friday.
The government asked Itaú Unibanco Holding SA, Banco Bradesco SA and Banco Santander Brasil SA this week to allow distributors to start repaying emergency credit lines extended over the past year at the end of 2017 instead of this year, said two of the sources.
The three sources requested anonymity because the talks are underway. Neither the banks nor the government declined to comment.
($1 = 3.059 Brazilian reais) (Additional reporting by Alonso Soto in Brasilia; Editing by Alden Bentley)
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