September 20, 2017 / 7:07 PM / in a month

Brazil's BNDES agrees to return $50 billion to government in 2017: source

RIO DE JANEIRO (Reuters) - Brazilian state development bank BNDES agreed to return 50 billion reais ($16.04 billion) to the National Treasury this year as requested by the government, a person with knowledge of the discussions told Reuters on Wednesday.

The logo of Brazil's development bank BNDES is pictured outside of the building in Rio de Janeiro, Brazil September 6, 2017. REUTERS/Pilar Olivares

BNDES president Paulo Rabello de Castro last week said he disagreed with the plan, which also included the transfer of 130 billion reais in 2018 to help reduce government debt.

The source, who requested anonymity because the decision has not yet been formally announced, said the amount to be returned in 2018 remains under discussion as the bank is looking for alternative funding sources.

BNDES is preparing to return 33 billion reais to the government as early as next week and 17 billion reais in October, the source added.

Finance Minister Henrique Meirelles said after an event in New York that talks with BNDES were still ongoing.

BNDES did not comment.

($1 = 3.1177 reais)

Reporting by Rodrigo Viga Gaier; Writing by Silvio Cascione; Editing by Jonathan Oatis

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