Monday, 3 February 2014

Brazil debt crackdown hits clubs hard

Brazil debt crackdown hits clubs hard

Last Updated: Sunday, February 02, 2014, 09:08
Brazil debt crackdown hits clubs hard
Brazil: A debts crackdown by Brazil`s central bank is set to hit several leading football clubs hard, including double World Club Cup winners Corinthians, media reports said Saturday.

The bank is looking to net some 40 billion reais ($16 billion) in the way of fines from a range of companies, including leading football clubs such as Corinthians, Internacional, Santos and Copa Libertadores champions Atletico Mineiro.

Other firms targeted include import and export companies as the bank indicated it was drawing up "efficient strategies" to face down the issue.
Corinthians face a fine of 2.2 million reais (some $800,000) while Atletico Mineiro are set to have to cough up 6.6 million.

A 2012 report by a Brazilian bank put club debts at $1.9 billion and several sides have fallen behind on salary payments as they battle a cash flow squeeze.
AFP -----------------------------

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