FINNEWS LATAM-Brazil's BNDES opens reserve account, paves way for local debt sales

Wed Jun 18, 2014 11:55am EDT

Brazil's national development bank BNDES on Wednesday opened a reserve account at the nation's central bank, a move that will allow the lender to handle and settle payments and sell debt instruments without the help of other financial institutions. In a statement, BNDES said the migration to the reserve account allowing the bank to join the central bank's SPB clearing and settlement of payments system will take place between June 27 and June 30.

The changes will allow borrowers to make payments directly to BNDES instead of other institutions that would collect proceeds from the bills and transfer the money to the BNDES, the statement said. By joining the SPB, BNDES will also have the ability to raise money in the local fixed-income markets through different instruments such as certificates of deposit and letras financeiras - or a debenture that can only be issued by banks.

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