“We are on the verge of a situation that could replicate a double-dipped recession, a tad different (from the one seen in 2008,) and a paralysis of credit in international markets,” Coutinho said at an event in Sao Paulo.”
Coutinho’s remarks signal that government officials are growing concerned over the impact of slowing economic growth and uncertainty that has sparked a rout in global markets.”
When markets unraveled in 2008, the government instructed BNDES to shore up debt-laden firms and foster mergers among those facing bankruptcy, easing fears of mass layoffs and company defaults in Latin America’s largest economy.

The role of the BNDES was key to avert a complete paralysis of local lending markets: in the six months through April 2009, state banks led by the BNDES boosted corporate loans by 20 percent, while private-sector banks raised them by just 2.5 percent.
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