GM Evaluating Brazil Government Loans, But In No Hurry -Executive
16 April 2009 - 6:51AM
Dow Jones News
General Motors do Brasil Ltda is evaluating the possibility of
turning to government financial behemoth BNDES for financing its
billion-dollar investment plan, an executive with close ties to
GM's regional chief executive said Wednesday.
"We are considering BNDES, private banks and Banrisul," the
executive said. "We are not in the market for immediate
financing."
Banrisul is the largest state-owned bank in south Brazil.
GM plans $1 billion in fleet upgrades and new models in its 2009
to 2012 investment plan. Some of the money would come from local GM
resources.
General Motors Co. (GM) in Detroit does not fund General Motors
do Brasil operations.
Brazil's National Development Bank, BNDES, is a low-interest
investment bank. Over the last several months, BNDES has acted as
lender of last resort when private banks have been cautious with
their lending practices.
-By Kenneth Rapoza, Dow Jones Newswires, 5511-2847-4541,
kenneth.rapoza@dowjones.com