Some banks have limited funding to BTG Pactual, source says

martes 8 de diciembre de 2015 17:58 GYT
 

SAO PAULO Dec 8 (Reuters) - A small number of international banks have limited access to short-term funding for Brazil's Grupo BTG Pactual, although the investment bank has mitigated that risk by acting promptly to reduce funding needs, a source with knowledge of the situation said on Tuesday.

BTG Pactual'S liquidity position has stabilized after the bank's management carried out a prompt dismantling of trading positions, began to sell pools of loans to rivals, and began to divest non-essential assets outside banking, said the source, who requested anonymity to speak freely about the issue.

The bank's actions and a credit line from Brazil's deposit guarantee fund FGC are helping BTG Pactual mitigate any short-term liquidity risks, the source added.

(Reporting by Guillermo Parra-Bernal; Editing by Leslie Adler)