Banco Central do Brasil denied a request from Banco Nacional de Desenvolvimento Econômico e Social for permission to issue a fixed-income real estate security called "LCI," according to a report by Folha de S.Paulo.
The central bank refused the request arguing that development banks should not engage in fixed-income securities that are designed to stimulate real estate, the publication noted.
BNDES wanted to issue real estate securities to raise funds and estimated it could generate around 30 billion Brazilian reais with the operation, in part to meet a repayment plan of 130 billion reais in 2018 to Brazil's National Treasury.
As of Feb. 2, US$1 was equivalent to 3.22 Brazilian reais.
