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Brazil's BNDES to complete debt renegotiation with 14 states

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Brazil's BNDES to complete debt renegotiation with 14 states

Banco Nacional de Desenvolvimento Econômico e Social said it expects to complete on Dec. 22 the renegotiation of 8.2 billion Brazilian reais in the debts of 14 states.

Under the renegotiation, state governments will have a 10-year extension in their payment term, including a four-year grace period, the bank said in a statement.

BNDES said it already signed agreements with the state of Piauí, with debts totaling 515.8 million reais, and Ceará, with a debit balance of 368.7 million reais.

Also this week, the debt contracts of the states of Acre, Alagoas, Amapá, Bahia, Maranhão, Mato Grosso do Sul, Paraíba, Pernambuco, Rio Grande do Sul, Santa Catarina, Sergipe and São Paulo will be renegotiated. The debts of these states total 7.25 billion reais.

The renegotiations were formalized through federal regulations in July, leading to approval by the National Treasury Secretariat. However, the renegotiated contracts will have to be approved by the National Treasury Attorney to become effective.

As of Dec. 15, US$1 was equivalent to 3.32 Brazilian reais.