Less than 3% of an 83 billion Brazilian reais that was announced by thegovernment in January has been used so far, OEstado de S. Paulo reported March 29, citing figures from state-run banks andBrazilian employee indemnity guarantee fund FGTS.

"Actually, people are afraid of being unemployed. … Thisscenario is totally unfavorable to ask for more credit," economist and formerBanco Central do Brasildirector Alberto Furuguem reportedly said.

The low credit demand trend in Brazil is in line with what analysts have told S&P Global MarketIntelligence; that the government's measures to boost credit due to a lack of borrowers.

Separately, Valor Econômicoreported March 28 that Brazilian companies are struggling to obtain credit withsome foreign banks the country, in additionto medium-sized banks reducing their presence, and public lenders facing a shortageof capital.

As of March 28, US$1 wasequivalent to 3.68 Brazilian reais.