Brazilian Bank to Return R$20 Billion to the Federal Government to Reduce Public Debt

In total, the government contributed R$86.5 billion to public banks. Caixa's overall debt amounts to R$40.2 billion. The BNDES owes R$36.1 billion; Banco do Brasil R$8.1 billion, Banco da Amazônia R$1 billion and Banco do Nordeste R$1 billion.

By Xiu Ying

RIO DE JANEIRO, BRAZIL - The president of state-owned savings bank Caixa Econômica Federal, Pedro Guimarães, announced on Wednesday, June 12th, the restitution of R$3 billion (US$750 million) to the government; Minister of Economy, Paulo Guedes, said that more state-owned banks are working to honor commitments with the Union, which will use the resources to reduce public debt.

"This money comes back to bail out public debt. This action is gradually decentralizing the credit market," the minister said at a press conference with Guimarães.

Guedes also said that by returning these . . .

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