A group of 16 major global banks agreed this evening to maintain their credit lines to Brazil, according to a statement issued here by the banks.
The statement was issued after a meeting including bankers with Brazilian Central Bank president Mr Arminio Fraga and Finance Minister Mr Pedro Malan at the Federal Reserve Bank of New York.
"The banks present at the meeting responded favorably to the presentations and reiterated their long-term commitment to Brazil and their support for the country's economic program," the statement said.
"They also expressed their intention to sustain their general level of business to the country including trade lines."
The banks, included US-based Citigroup, JP Morgan Chase and FleetBoston; Europe's Deustche Bank and BNP Paribas and Japan's Sumitomo Mitsui Banking.
Also signing the statement were ABN Amro Holdings; Banco Bilbao Vizcaya Argentina; Banco Santander Central Hispano; Bank of America Corp; The Bank of New York; The Bank of Tokyo-Mitsubishi; Commerzbank AG; Dresdner Bank and Allianz Group; HSBC Holdings; and Standard Chartered PLC.
The agreement is likely to ease concerns about a potentially disastrous default by South America's largest economy and help bolster confidence following steep decline in the country's financial markets and its currency, the real.
A representative of the International Monetary Fund also attended today's meeting.
Earlier this month, Brazil obtained a record $30 billion credit from the IMF as part of an effort by world finance officials to help stabilize the economy amid concerns about a potential left-wing victory in October elections.
AFP