Court bars Brazil c bank from liquidated bond sale

BRAZIL - The Central Bank's plans to sell R$11.004 billion in dollar-linked bonds owned by banks under government liquidation - Economico, Mercantil de Pernambuco and Nacional - is under threat.

A local court ruled in favor of Mercantil de Pernambuco, barring the Central Bank from selling the bonds. Mercantil de Pernambuco's lawyer Fernando Orotavo Junior said his client has around R$1.5 billion in these bonds. The Central Bank said it will appeal.