Brazil’s government has authorized guarantees for more than $3 billion in new loans to state power company Eletrobras according to information published in the country’s federal register. The loans will be made by state banks Banco do Brasil and Caixa Economica Federal through 2015 to cover operating costs and investment, and will be scheduled for repayment over an 8-year period. The latest funding comes in addition to some $3 billion in loans granted for local power distributors last week by a group of public and private banks. Local power companies have taken more than $10 billion in loans this year to overcome an energy deficit prompted by adverse climate conditions and a lack of water supply at the country’s hydroelectric reservoirs. In response to current conditions the country has been obliged to maintain more costly auxiliary thermoelectric plants in operation.