The federal government will allow the big foreign banks to finance state governments with cash problems

The federal government will allow the big foreign banks to finance state governments with cash problems, according to a report in Folha de S. Paulo. The Federal Government plans to provide guarantees. So far Citibank, JPMorgan, Bank of America Merrill Lynch, BNP Paribas and Banco Santander have shown interest in providing financing, the newspaper reported. “In order to provide matching funds, state governments can continue with plans to privatize state enterprises.”