RIO DE JANEIRO, March 31 A decision by Brazil's
government to set a new benchmark for loans by state development
bank BNDES will help keep a lid on credit subsidies and drive
down borrowing costs as a whole, the bank's president said on
The government is creating a new long-term rate that will
replace the so-called TJLP rate to which BNDES loans are pegged.
The new rate will entice capital markets activity and facilitate
the pricing and securitization of BNDES loans, said Chief
Executive Officer Maria Silvia Bastos Marques.
(Reporting by Rodrigo Viga Gaier; Writing by Guillermo
Parra-Bernal; Editing by Marguerita Choy)