June 21, 2016 / 7:32 PM / 2 years ago

Brazilian banks solid after Oi bankruptcy petition -central bank

SAO PAULO, June 21 (Reuters) - The bankruptcy petition of mobile phone carrier Oi SA, the biggest ever in Brazil, poses no threat to the country’s financial system, central bank director Aldo Mendes said on Tuesday.

The company’s petition late on Monday to seek protection from creditors on 65.4 billion reais ($19.2 billion) in liabilities, raised alarms about the exposure of local lenders.

Speaking at an event in Sao Paulo, Mendes, director of monetary policy, also said the bank is waiting on international economic events before deciding whether to intervene in the local currency market.

Mendes said those events include Britain’s vote on Thursday on whether to abandon the European Union and upcoming interest rate decisions by the U.S. Federal Reserve.

Reporting by Aluisio Alves; Writing by Alonso Soto; Editing by Tom Brown

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