Brazil: $4.6 bln credit for meat processors

The Brazilian government's National Monetary Council approved a $4.6 billion line of credit for that country's meat processing companies.

The permission for the credit line was given late last week, according to reports.

Stock prices soar

The decision of approval has caused Brazilian meat companies' stock prices to sky rocket. Shares of JBS ended the day up 6.8%, Sadia closed up 3.7%, and Marfrig was up 8.3% at close of trading on Thursday.

Reports have stated that the line of credit, which was available as of Friday last week, will have a favourable subsidized interest rate of 11.25%.

Expected by Brazilian sector

The governmental boost had been expected by the Brazilian sector for a few months. The Brazilian meat industry has been great affected by the tight credit market since the increased credit crisis that has taken place in recent months.

"It will help the meatpackers sector fundamentally, but also the pork, poultry and beef producers," Finance Minister Guido Mantega stated.

The credit originates from the BNDES development bank.

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