SAO PAULO, May 13 (Reuters) – Brazilian state development bank BNDES on Wednesday offered airlines a rescue package of 4 billion reais ($ 680 million), less than half of what was originally anticipated, said a source with knowledge of the problem.
The plan has shrunk over time, from 10 billion reais, to 6 billion reais and now to 4 billion.
Under the terms of this plan, BNDES will provide 60% of the rescue line, while private banks will contribute 10% and the rest will come from capital market investors.
The rescue plan will be offered to three of Brazil’s top airlines, Gol Linhas Aereas Inteligentes SA, Latam Airlines Group and Azul SA. That may still change, depending on how talks with airlines develop, the source said.
Previously, negotiations between BNDES and airlines involved a credit limit of 10 billion reais.
In addition to debt, the rescue plan includes instruments that can be converted into equity.
Azul said that he had received a revised proposal regarding the potential aid that was currently being revised. Gol refused to comment on this issue. BNDES and Latam did not immediately comment on this issue.
Bloomberg reported earlier on Wednesday the number of rescue plans. ($ 1 = 5.8852 reais) (Reporting by Carolina Mandl and Marcelo Rochabrum; Editing by Lincoln Feast.)
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