Brazil’s Caixa to fund $1.3 bln in exports to Iran, Valor says

Bloomberg: Brazil’s state-controlled Caixa Economica Federal will finance up to 1 billion euros ($1.3 billion) in beef shipments to Iran after private banks refused to extend credit to exporters, fearing retaliation from the U.S. and European Union, Valor Economico said.

By Joshua Goodman

Aug. 13 (Bloomberg) — Brazil’s state-controlled Caixa Economica Federal will finance up to 1 billion euros ($1.3 billion) in beef shipments to Iran after private banks refused to extend credit to exporters, fearing retaliation from the U.S. and European Union, Valor Economico said.

The financing will be backed by Brazil’s Treasury, which will be responsible for collecting payment from the Iranian government, the Sao Paulo-based newspaper said.

Sanctions imposed by the United Nations in June over Iran’s nuclear program, and followed up with tighter restrictions by the U.S. and EU, has led Brazilian banks to reject credit guarantees issued by Iranian banks, the newspaper said.

President Luiz Inacio Lula da Silva, in a visit to Tehran in May, signed an agreement to finance food exports to Iran, as well as boost investment and expand air connections between the two countries. Annual trade with Iran has more than doubled to $1.2 billion since Lula took office in 2003.