The Federal Auditing Court (TCU) on Wednesday authorized the government-run Brazilian Development Bank (BNDES) to transfer up to R$100 billion to the Federal Treasury over the next three years. The court approved a government-submitted plan to obtain the funds but added that the money can only be used to pay down portions of the government’s R$3 trillion in debt. The R$100 billion was originally loaned to the BNDES by the Treasury for use by the bank as business loans. In the years since, however, the Treasury has become increasingly strapped for cash because of lagging tax revenues and a stubborn recession. Under the plan, the BNDES will return R$40 billion this year and then R$30 billion per year in 2017 and 2018.
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