Brazil’s central bank altered reserve requirement and loan loss provision rules to help free up some $11 billion to the economy via credit operations, the institution announced Wednesday. According to the latest measures, the monetary authority will allow that 60% of term deposit requirements be complied with through credit operations. The central bank also said it would consider use of vehicle financing operations and treasury bills acquired by July 25 for compliance with term deposit requirements. Alongside those measures, the bank said it would change loan loss provision rules to free up to an additional $6.6 billion. The boost of extra liquidity announced Wednesday comes in addition to more than $13 billion injected to the economy through measures announced late last month. Brazil’s central bank has taken measures to increase liquidity and credit operations in recent months to help inject vigor into the country’s still sluggish economy. According to the central bank’s latest weekly market survey, analysts project the country’s economy will likely grow less than 1% this year.




