Brazil’s second largest private lender Banco Bradesco SA said it is likely to borrow money from the country’s central bank using its credit portfolio as collateral this month, vice-president Cassiano Scarpelli said. Earlier in April, the country’s Monetary Council authorized the central bank to lend directly to banks using credit portfolios as collateral, in a move that would allow banks in Brazil to issue 650 billion reais ($125.77 billion) in new loans.
Deforestation in Brazil’s Amazon rainforest rose in March which indicates that illegal loggers and land speculators have not stopped destroying the forest with the onset of the coronavirus outbreak. Destruction in Brazil’s portion of the Amazon rose 30% in March, compared to the same month a year ago, according to the country’s space research agency, INPE.
Toyota Motor Co said it was suspending auto production in its Brazil plants until at least June 22, joining General Motors Co which also expects to resume production in the same month. Most carmakers in Brazil, South America’s top auto producer, are currently not producing cars due to the coronavirus crisis.
Brazil will launch a 10 billion-real ($1.9 billion) program to support micro businesses with good credit history but whose finances have been hit hard by the economic impact of the coronavirus pandemic, two Economy Ministry sources told Reuters. The scheme, to be unveiled this week, will be targeted at firms with annual revenue of up to 360,000 reais and will be operated via state-owned lender Caixa Economica Federal.
Brazil’s economy will shrink this year by 5.0% due to the direct and indirect economic impact of the coronavirus pandemic, according to The World Bank, which would mark the country’s biggest crash in at least half a century. In its semi-annual report for the region “The Economy In The Time Of Covid-19” published on Sunday, The World Bank said Brazil faces three major shocks: weak global demand, low oil prices, and the economic disruption from domestic virus-containment measures.