Brazil announces new $4.5-bn credit stimulus

Security guards stand by the entrance to Brazil's central bank in Sao Paulo on March 7, 2012Brazil’s central bank said Wednesday it would ease banks’ reserve requirements for the second time in less than a month, freeing up $4.5 billion to stimulate lending and boost the sluggish economy. Under the new rules, banks will be allowed to use up to 60 percent of reserves for credit operations, an increase from the 50-percent limit announced on July 25. The bank said the move would free up an additional 10 billion reals ($4.5 billion) in credit. It comes on the heels of the July 25 stimulus measures, which the bank said would free up $13 billion in additional credit.

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