Sept. 13 (Bloomberg) -- Brazil proved to be a “success case” among global economies as growing domestic demand and investments helped buffer that nation during the economic downturn, central bank President Henrique Meirelles said today.

Brazil is in a “very strong position” now with bank loans being granted at pre-crisis levels, Meirelles said in an event in Brasilia, sponsored by the country’s dealership federation, known as Fenabrave.

Brazil, Latin America’s biggest economy, emerged from its first recession since 2003 in the second quarter of this year powered by domestic demand. Gross domestic product expanded 1.9 percent in the second quarter from the previous three months, after having contracted in the previous two quarters, the national statistic agency said Sept. 11.

Central bankers led by Meirelles halted seven months of interest rate cuts Sept. 2 saying the current benchmark rate will spur growth without stoking inflation. They left the benchmark Selic unchanged at a record low of 8.75 percent.

To contact the reporters on this story: Andre Soliani Costa in Brasilia at asoliani@bloomberg.net; Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net.

Last Updated: September 13, 2009 16:31 EDT