November 23, 2016 / 4:11 PM / 2 years ago

Brazil courts approves BNDES loan repayment to Natl Treasury

SAO PAULO, Nov 23 (Reuters) - Brazil’s federal accounting court allowed on Wednesday state development bank BNDES to make an early repayment of 100 billion reais ($30 billion) in loans owed to the National Treasury, boosting government efforts to cut a ballooning debt burden.

The ruling, which was widely expected, by the court known as TCU is key to also helping the federal government cut debt-servicing costs and reduce the burden of subsidized loans on the budget. The repayment, as planned by the National Treasury and the BNDES, will be done in installments.

The early debt repayment will be accounted as financial revenue, meaning it will not have an impact on the federal government’s primary budget balance, officials had said previously.

Reporting by Marcela Ayres and Alonso Soto; Writing by Guillermo Parra-Bernal; Editing by Chizu Nomiyama

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