Brazil-New line of credit for meat companies.

BRAZIL-CREDIT LIFE-LINE FOR MEAT COMPANIES.

The Brazilian government’s National Monetary Council on Thursday approved a 10 billion-real (about $4.6 billion) line of credit for that country’s meat processing companies, Reuters has reported.

The news sent Brazilian meat companies’ stock prices soaring.

Shares of JBS ended the day up 6.8 percent, Sadia closed up 3.7 percent, and Marfrig was up 8.3 percent at close of trading on Thursday.

The line of credit, which is available as of today, will have a favorable subsidized interest rate of 11.25 percent. The credit originates from the BNDES development bank, Reuters said.

The governmental boost had been expected by the Brazilian sector for a couple of months. Brazil’s meat industry has been hit hard by the tight credit market since the deepening of the global crisis.

"It will help the meatpackers sector fundamentally, but also the pork, poultry and beef producers," Finance Minister Guido Mantega told reporters.