Brazil-Credit for meat exporters.

BRAZIL.

FOREIGN CURRENCY CREDIT FOR MEAT EXPORTS.

The Central Bank of Brazil, is offering lines of credit to meat exporters, in a bid to ease the credit crunch afflicting the countries meat exports. The announcement was made, by the president of the central bank, Henrique Meirelles, who said that there would be an auction of sovereign bonds, as collateral for such loans which will be Brazilian bonds, this will the be followed by a second auction of foreign bonds.

As well as bonds, exporters can also use export receivables and letters of credit as collateral. The government, allowed the central bank to extend lines of credit in foreign currencies to local financial institutions.President Lula de Silva, has insisted that banks use these funds for export companies especially in the meat export sector, as opposed to investing them in high yielding government bonds.

Finance Minister Guido Mantegs, said , "that despite the deterioration caused by the global economy, Brazil will grow between 4 and 5% for the year 2009".

Brazils markets and economy, have grown rapidly in recent years, but the country has taking a thumping, since the global economic downturn..