Banco do Brasil eyes credit growth at top of target range, VP says

By Marcela Ayres

BRASILIA, Sept 14 (Reuters) - Brazilian state-run lender Banco do Brasil SA expects robust credit growth this year, hitting the top end of its expected range, buoyed by falling interest rates and consumer debt renegotiation program, a senior executive said on Thursday.

Following the bank's revision of its credit growth outlook last month from 8-12% to 9-13% in 2023, Jose Ricardo Sasseron, vice president of government and corporate sustainability said, "It is highly likely that we will be near the upper end."

In its latest credit outlook, Brazil's central bank forecast a 7.7% expansion in domestic bank lending this year.

In a phone interview from New York, where Sasseron is promoting the bank's sustainability agenda, he said Banco do Brasil is set to sign deals with development banks to finance projects related to reforestation, bioeconomy, renewable energy and female entrepreneurship.

Sasseron said the bank would announce at least three deals next week with a total value of roughly $1 billion.

He expressed optimism regarding the credit growth outlook in Latin America's largest economy, which has seen economic forecasts consistently improving throughout the year.

The new government of President Luiz Inacio Lula da Silva has also created a consumer debt renegotiation program, called Desenrola, encouraging direct negotiations with banks in exchange for regulatory incentives for more lending.

Banco do Brasil will close this week with approximately 10 billion reais ($2.05 billion) in debts renegotiated with around 1 million clients, said Sasseron.

"Desenrola's impact, with millions of clients returning to the credit market, plus the economy picking up and interest rates gradually declining, creates a scenario that will be very positive for us, and the volume of credit operations will undoubtedly increase," he said.

($1 = 4.8743 reais) (Reporting by Marcela Ayres Editing by Brad Haynes and Aurora Ellis)