Brazil State-controlled Bank Cuts Credit Lines to JBS SA

DanDairy & Livestock, Industry News Release

brazilA state-controlled bank in Brazil has cut credit lines to meat processor JBS SA, following the plea bargain deal in which the company’s majority owner admitted paying bribes to Brazilian politicians. Meat industry publication Meatingplace reports the bank decided to review the conditions of JBS’ credit limit, and of a loan expiring in 2018. Reuters previously reported that the Brazilian government had ordered the bank not to refinance existing credit lines to J&F, the company controlling JBS. However, other state-controlled banks in Brazil are not planning to do the same. The move stems from a majority shareholder revealing in a plea bargain in April an apparent consent to bribe politicians. JBS signed a leniency deal to pay the equivalent of $3.15 billion in fines to settle the charges over corruption.

From the National Association of Farm Broadcasting News Service.