RIO DE JANEIRO (Reuters) -Brazil’s government is mulling shifting some 30 billion reais ($5.54 billion) from a fund managed by state development bank BNDES to support local firms hit by steep tariffs imposed by the U.S. on Brazilian goods, three sources familiar with the matter said on Thursday.
Brasilia is readying relief measures for the industries hit by the U.S.’ 50% levies, which went into effect on Wednesday, with a plan expected to be announced by early next week.
Among the proposals, the sources said, includes pulling from BNDES’ so-called Export Guarantee Fund, which holds around 50 billion reais and has rarely been tapped, to offer credit lines to affected Brazilian firms.
The loans are dependent on companies maintaining their employment numbers in the country, according to the sources. In exchange, they can tap into the credit with reduced interest rates and a grace period to pay back what they owe.
“This is a surplus and liquid fund,” one of the sources said. “The details are being finalized.”
Other credit programs are also being weighed by the government, two of the sources said.
($1 = 5.4156 reais)
(Reporting by Rodrigo Viga Gaier; Editing by Kylie Madry)
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