Multilateral financial assistance to the Banco Central do Brasil

10 December 1998

Press release

Within the framework of an international financial support programme for Brazil, the Bank for International Settlements (BIS) is coordinating a Credit Facility of up to USD 13.28 billion in favour of the Banco Central do Brasil, with the backing of 19 participating central banks: Banque Nationale de Belgique, Bank of Canada, Danmarks Nationalbank, Deutsche Bundesbank, Bank of England, Banco de EspaƱa, Suomen Pankki - Finlands Bank, Banque de France, Bank of Greece, Central Bank of Ireland, Banca d'Italia, Banque Centrale du Luxembourg, Oesterreichische Nationalbank, De Nederlandsche Bank N.V., Banco de Portugal, Schweizerische Nationalbank, Sveriges Riksbank, Federal Reserve Bank of New York, as representative of the US Department of the Treasury, and Norges Bank.

This Facility, which has a draw-down period of one year, has been offered to the Banco Central do Brasil together with a parallel Facility of up to USD 1.25 billion granted by the Japanese monetary authorities. Upon approval by the Brazilian Senate, these Facilities can enter into effect and allow the Banco Central do Brasil to apply for a first drawing of up to USD 4.18 billion under the BIS Facility, together with a corresponding drawing under the Japanese Facility. Drawings upon both Facilities are linked to disbursements under a Supplemental Reserve Facility provided to Brazil by the International Monetary Fund.