Bank of Brazil will finance exports to Argentina, says Haddad

The Brazilian Minister of Finance, Fernando Haddad, announced in a press conference this Monday, 23rd, in Buenos Aires, that the Bank of Brazil will finance exports of Brazilian companies to Argentina.

Alongside the Argentine Economy Minister, Sergio Massa, Haddad explained that the possible risks of these operations will be assumed by a sovereign guarantee fund.

“Banco do Brasil is not going to take any risk with this export credit operation,” said the Minister.

“We are going to have a guarantee fund, which is a sovereign fund, which will guarantee the letters of credit issued by Banco do Brasil for Brazilian exporters.”

The comment was made during the Minister’s explanation on the creation of a common currency for the Mercosur and BRICS countries, the main theme of President Luiz Inácio Lula da Silva’s trip to Argentina

For Haddad, the creation of the common currency aims to increase commercial relations between Brazil and Argentina, which would have fallen by 40% in the last ten years.

The currency was supposed to help nations “escape” from the dollar.

“We have a team dedicated to finding a way that provides guarantees not only for exporters, but also for Brazil and for Banco do Brasil in particular, which will finance exports by issuing a letter of credit, which guarantees that, at the top of trade relations, there will be two countries guaranteeing their credits based on some real and convertible asset”, said the Minister.

With information from Revista Oeste