Brazil-Credit squeeze over.

BRAZIL-CREDIT SQUEEZE OVER.

Brazilian credit availability, has returned to levels seen before the global economic crisis in September.

Brazilian Central Bank head Henrique Meirelles, made the announcement on Tuesday in San Paulo.

Speaking before a group of business leaders, he said the improvement in the credit supply came as a result of government initiatives to compensate for tight credit facilities abroad.

"We are substituting foreign credit, in a second phase it will be important for the costs of credit to decline", he went on to say.

In January Brazils government injected US$61 billion into local markets, and freed up a further US$100 billion for credit to exporters.