NEW YORK -- Brazil said its creditor banks have agreed to postpone the closing date for a Brazilian debt reduction deal to the end of February.

The deal, involving some $35 billion of Brazilian debts to foreign commercial banks, was originally scheduled to close at the end of November.

However, Brazil has been unable to obtain approval from the International Monetary Fund for its economic program.

IMF approval is needed to release a standby facility for Brazil and some $1.6 billion in funds the IMF and other multilateral lending agencies are providing as collateral for the deal.

A statement from the country's bank advisory committee said the delay would provide time for discussions between the IMF and Brazil.

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