Brazil's Rousseff aims to pump up to $15 bln into economy - sources

miércoles 27 de enero de 2016 14:50 GYT

By Alonso Soto

BRASILIA Jan 27 (Reuters) - Brazil's President Dilma Rousseff could release up to 60 billion reais ($15 billion) in fresh credit from state-run banks and a workers' pension fund to help lift the country out of a deep recession, two senior government sources said on Wednesday.

Her government will announce the fresh credit at a high-profile meeting with business leaders and union bosses on Thursday, at which it will unveil a blueprint to pull the economy out of what could be its worst recession in a century.

"The overall figure could rise to 60 billion reais but we are still finishing the details," said one of the officials, who were not authorized to speak publicly about the matter. "This will have no fiscal impact. The Treasury will not pour in any fresh capital to those banks."

In December, the government repaid 56 billion reais in debts to state-run lenders BNDES, Banco do Brasil, Caixa Economica Federal, and a workers' pension fund known as FGTS.

That extra liquidity will be used to open new credit lines to construction companies, farmers, exporters and producers of machinery and other capital goods, the official said.

The government is also considering a scheme to allow workers to use part of their FGTS funds as collateral to get loans.

The administration believes the new credit will help companies retain employees after the economy shed a record 1.5 million jobs last year.

The new stimulus has raised fears among investors that Rousseff will return to the expansive fiscal policies of her first term that eroded Brazil's public accounts and cost the country its investment grade rating.   Continuación...