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Article: Brazil : Brazil Unwinds Lending Stimulus as Credit Returns to Normal.
- Article from:
- TendersInfo
- Article date:
- October 1, 2009
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Brazil s central bank took the first step to dial back credit stimulus measures as total outstanding loans hit a record after a global financial crisis.
Policy makers tightened the rules for banks to meet reserve requirements. Banks can now satisfy such requirements by buying loans only from lenders that have no more than 2.5 billion reais ($1.4 billion) in assets, down from a prior limit of 7 billion reais, according to a statement late yesterday.
To combat the credit crunch that pushed Brazil into its first recession since 2003, the central bank led by President Henrique Meirelles injected about 100 billion reais into money markets to spur economic ...