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Brazil's Central Bank authorized to lend to banks against credit portfolios worth $124 bln

SAO PAULO, April 2 (Reuters) - Brazil's Monetary Council has authorized the central bank to lend directly to banks using credit portfolios as collateral, according to a statement posted on the central bank's website regarding a decision announced on Wednesday.

The temporary credit line to the banks will help the financial system deal with the strong demand for credit caused by the fallout from the coronavirus pandemic, the statement added. The central bank estimates total credit portfolios that may be used as collateral may reach 650 billion reais ($124 billion). ($1 = 5.2493 reais) (Reporting by Tatiana Bautzer; Editing by Alex Richardson)