Brazil to End BNDES Rate Cuts on Machinery Purchases, Valor Says

Brazil’s treasury will end a subsidy on interest rates charged by the state development bank, BNDES, on purchases of equipment and machinery, Valor Economico reported, citing Finance Minister Guido Mantega.

The subsidies were introduced in June 2009 and will end in March 2011, the Sao Paulo-based newspaper said. The treasury plans to cut funds to BNDES by half next year, the newspaper said.

To contact the reporter on this story: Laura Price at lprice3@bloomberg.net

To contact the editor responsible for this story: Telma Marotto at tmarotto1@bloomberg.net

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