MercoPress. South Atlantic News Agency

Lula da Silva prepares for October elections

The Brazilian government announced a 1,3 billion US dollars support package for Brazilian media

Carlos Lessa president of the National Economic and Social Development Bank, BNDES, said half the funds will be to cancel short term debts and the rest loans for purchasing newsprint and expansion of existing plants.

However Mr. Lessa cautioned the support package still needs Senate approval since it involves changing the national budget.

"I'd like to see this over in 2,3 months but it now depends on the Senate", indicated Mr. Lessa.

BNDES president indicated that no media consortium was pressing for government financing, since the final proposal has yet to be finalized.

Brazilian political analysts said president Luiz Inacio Lula da Silva is anxious to solve the issue on time for the coming October municipal elections which are considered a vital test for his administration.

Several Brazilian media corporations have repeatedly complained about their high indebtness, which has suffered the impact of the strong domestic market recession.