Tag Archives: CORONAVIRUS / BRAZIL

Brazil’s monetary council facilitates lending again | Instant News


SAO PAULO, April 9 (Reuters) – Brazil’s monetary council said on Thursday banks were not required to increase provisions for loans made between March and September, in a move to allow banks to further extend new loans.

The Brazilian central bank also said it had reduced capital requirements for small company loans, freed 3.2 billion reais in capital and allowed the bank to renegotiate 228 billion reais in credit.

Reporting by Carolina Mandl; Editing by Catherine Evans

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UPDATE 2-Brazilian airline Gol has room to trim its fleet to counteract the effects of the coronavirus | Instant News


(Adds details, stock price)

By Marcelo Rochabrun

SAO PAULO, April 7 (Reuters) – Brazilian airline Gol Linhas Aereas Inteligentes has the flexibility to reduce its fleet from 130 Boeing 737 aircraft to 100 by allowing the lease to expire, executives said Tuesday when discussing steps to tackle the effects of the coronavirus outbreak. .

Gol Struggle, the largest domestic airline in Brazil, which has flown all but 10 planes and only flies 50 flights a day, is typical of a wider industrial crisis because travel bans related to the pandemic have shrunk global demand.

But the airline, which is currently negotiating for potential credit lines from the Brazilian national development bank, is entering a crisis with significant accumulated losses.

Chief Executive Gol Paulo Kakinoff said at a conference call that the reduced network did not burn cash on the flight itself and the company had cut all costs. Payroll costs dropped by half, with a mixture of salary deductions and 5,400 unpaid leave workers.

Gol has also negotiated to postpone lease payments with the aircraft lessor with a grace period of six months, according to securities submission on Tuesday.

The steps have reduced spending by almost half to about 350 million reais ($ 66.82 million) per month, the executive said, but there was little income to offset it.

The reduction in spending levels will last until May 3, but executives said it could be extended because they did not see significant changes to their flight schedules later in May.

Kakinoff assessed the potential credit lines of the Brazilian state development bank BNDES of 3 billion reais ($ 574.64 million).

He said it would be paid in full for five years, with payments only beginning in the third year.

But what is still pending is interest rates and an agreement on share prices for warrants in return for loans.

Gol’s stock price has fallen more than 70% this year. On Tuesday, shares rose 7.5%, while the broader Brazilian Bovespa index was 6% higher.

Press reports say Brazilian airlines are debating with BNDES over whether warrants will be based on current stock prices or before the crisis hit.

“The management of this company will not determine the price of debt instruments based on the share price yesterday, today or tomorrow,” said Chief Financial Officer Gol Richard Lark. “This will not happen.” ($ 1 = 5.2207 reais) (Reporting by Marcelo Rochabrun; Additional reporting by Carolina Mandl; Editing by Jonathan Oatis and Bernadette Baum)

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UPDATE 2-Brazilian airline Gol has room to trim its fleet to counteract the effects of the coronavirus | Instant News


(Adds details, stock price)

By Marcelo Rochabrun

SAO PAULO, April 7 (Reuters) – Brazilian airline Gol Linhas Aereas Inteligentes has the flexibility to reduce its fleet from 130 Boeing 737 aircraft to 100 by allowing the lease to expire, executives said Tuesday when discussing steps to tackle the effects of the coronavirus outbreak. .

Gol Struggle, the largest domestic airline in Brazil, which has flown all but 10 planes and only flies 50 flights a day, is typical of a wider industrial crisis because travel bans related to the pandemic have shrunk global demand.

But the airline, which is currently negotiating for potential credit lines from the Brazilian national development bank, is entering a crisis with significant accumulated losses.

Chief Executive Gol Paulo Kakinoff said at a conference call that the reduced network did not burn cash on the flight itself and the company had cut all costs. Payroll costs dropped by half, with a mixture of salary deductions and 5,400 unpaid leave workers.

Gol has also negotiated to postpone lease payments with the aircraft lessor with a grace period of six months, according to securities submission on Tuesday.

The steps have reduced spending by almost half to about 350 million reais ($ 66.82 million) per month, the executive said, but there was little income to offset it.

The reduction in spending levels will last until May 3, but executives said it could be extended because they did not see significant changes to their flight schedules later in May.

Kakinoff assessed the potential credit lines of the Brazilian state development bank BNDES of 3 billion reais ($ 574.64 million).

He said it would be paid in full for five years, with payments only beginning in the third year.

But what is still pending is interest rates and an agreement on share prices for warrants in return for loans.

Gol’s stock price has fallen more than 70% this year. On Tuesday, shares rose 7.5%, while the broader Brazilian Bovespa index was 6% higher.

Press reports say Brazilian airlines are debating with BNDES over whether warrants will be based on current stock prices or before the crisis hit.

“The management of this company will not determine the price of debt instruments based on the share price yesterday, today or tomorrow,” said Chief Financial Officer Gol Richard Lark. “This will not happen.” ($ 1 = 5.2207 reais) (Reporting by Marcelo Rochabrun; Additional reporting by Carolina Mandl; Editing by Jonathan Oatis and Bernadette Baum)

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Brazilian goal reached an agreement with the lessor to delay payment – archiving | Instant News


SAO PAULO, April 7 (Reuters) – Brazilian airline Gol Linhas Aereas Inteligentes has reached an agreement with the plane’s lessor to delay the lease payment by a grace period of six months, according to securities filings on Tuesday.

The company also said it had rolled over short-term maturities with local banks and increased credit limits, in addition to extending the amortization of corporate bonds to 2022. (Reporting by Carolina Mandl Editing by Chizu Nomiyama)

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Brazil’s tropical fruit exports to the EU are affected by industry-virus groups | Instant News


SAO PAULO, April 6 (Reuters) – Brazilian tropical fruit producers including mangoes and papayas have been hit by falling European demand amid coronaviruses and feel burnt after overly relying on EU sales, the lobbying group Abrafrutas told Reuters on Monday.

Europe is the second major hot spot for the COVID-19 epidemic that began in China and orders from the continent began to fall as a result of locking to hold the virus, Jorge de Souza, manager for international projects and promotions at Abrafrutas, said in an interview.

While most domestic fruit production can be transferred to the Brazilian market, this problem will affect the association’s goal to export more than $ 1 billion in 2020, up from around $ 860 million last year, Souza said.

The European Union buys 60% of Brazil while the United States gets 18%, he said.

“Europe is our thermometer,” Souza said by telephone. “There was a decrease in orders due to smaller demand.”

Consumers show a preference for fruits with longer shelf life, hurting export demand for products such as papaya, one of Brazil’s top 10 exports.

Brazil relies on ships for 90% of its fruit and aircraft exports for 10%, Souza said.

Eduardo Sampaio Marques, secretary of agricultural policy at the Brazilian Ministry of Agriculture, said there was a decline in exports for products such as soft fruits that depend on air transportation.

But Marques noted that the government did not plan steps to alleviate the situation because exports of agricultural air transport are a small segment of the market, instead focusing on efforts to help producers of fresh products domestically.

Souza said sea transportation was actually normal except that it was necessary to order refrigerated containers “well in advance” to overcome shortcomings since disruptions hit Chinese ports earlier this year.

Brazil is the 24th largest exporter of fruit in the world but is the third largest producer after China and India, ahead of the United States, Souza said.

“We have to be in the top 10,” Souza said, adding that Abrafrutas wanted to make Brazil a more aggressive exporter. Recently, Brazil was allowed to sell melons to China, but the coronavius ​​crisis delayed initial sales, he said.

Regarding Europe, a shortage of rural labor on the continent could reduce the internal supply of fresh produce, with Europe likely to switch to Brazil again.

“We have fruit to sell. We produce all year long. “(Reporting by Ana Mano in São Paulo and additional reporting by Jake Spring in Brasília; Editing by David Gregorio)

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