RIO DE JANEIRO, BRAZIL - Financial institutions will be able to take out loans with the Central Bank. The estimate is for the release of R$650 (US$125) billion into the economy.
On Wednesday evening, in an extraordinary meeting, the National Monetary Council (CMN) authorized the Central Bank (BC) to grant loans to banks taking as collateral the credit portfolios of these institutions. The operations will have a minimum of 30 days and a maximum of 359 calendar days maturity.
According to the Central Bank, the Special Temporary Liquidity Line (LTEL) aims to provide the liquidity (available resources) "required for . . .