June 16, 2009
Brazil meatpacker Bertin, IFC rescind BRL90 million loan
Meatpacker Bertin and the International Finance Corporation has reached mutual agreement on rescinding an IFC loan to the Brazilian company because of current unfavourable economic conditions.
The loan was originally signed in 2007 for 90 million Brazilian reals (US$46 million). Bertin has so far received BRL60 million in the loan money. In a statement Monday (June 15), Bertin said it will return the BRL60 million and decline to receive the remaining BRL30 million.
"Because of current economic realities, Bertin and the IFC decided, by mutual consent, to discontinue the agreement," Bertin said in a statement.
Brazil's economy plunged into recession in the fourth quarter of 2008, leading to stagnant domestic demand for food products. The meatpacking industry has also coped with declining exports and criticism of its environmental practices.
