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BNDES to repay Brazil's debt with cash and securities

Staff Writer | November 24, 2016
brazil's state development bank BNDES plans to repay up to 100 billion reais ($29 billion) in loans owed to the federal government using a mix of cash and securities, CEO Maria Sílvia Bastos Marques said.
LatAm   $29 billion in loans
BNDES will not use the 70 billion reais worth of equity holdings that it owns through investment arm BNDES Participações SA for the repayment, Bastos said in a Tuesday interview at the bank's Rio de Janeiro headquarters.

The repayment is eagerly awaited by government officials racing to stem a budget deficit that may hit a record for a second year.

Bastos voiced agreement with Finance Minister Henrique Meirelles that the repayment should be used to cut Brazil's national debt, and not to help debt-laden states, as proposed by some ministers, Reuters reported.

"Brazil's first, second and third priority is fixing public finances," Bastos, 59, said. "We're doing our part."