Brasila, Oct 22 - More Brazilian companies will announce losses in the currency derivatives market but those that already have are solid and can continue to operate normally, Finance Minister Guido Mantega said on Tuesday.
A handful of leading Brazilian companies have announced billions of reais in currency losses over the past two weeks, including food processor Sadia , pulp and paper maker Aracruz and industrial conglomerate Votorantim.
"Companies that had losses with derivatives are solid and can continue operating normally," Mantega said during a public hearing in Congress on Tuesday.
"There will be others, but with smaller problems than those companies," Mantega said.
The government did not have a figure on overall losses in the currency market and would not finance a bailout, the finance minister said.
"It's a private (sector) problem .... The government is only increasing liquidity. We're not rewarding those who made bets and will pay the price for making the wrong bet," Mantega said.
The real currency has lost as much as a third of its value against the dollar since reaching a nine-year high in early August.
France-based Tereos, one of Europe's largest sugar producers, has transferred $220 million to its Brazilian subsidiary, Acucar Guarani to cover short-term debt obligations, Guarani said.
The dollar-denominated debt sharply increased in reais as a result of the real's depreciation, Guarani said in a statement.
Guarani said in August it had 728.9 million reais ($325.7) in net debt, 75 percent of which was short-term.
Airline Gol Linhas Aereas said late on Monday that the currency plunge had raised its debt by 225 million reais ($103 million).
The company also said it had lost a net 48 million reais as a result of losses on hedge positions for fuel. It had hedged about 55 percent of its expected fuel consumption for the third quarter at an average price of $132 per barrel of oil.
The government is looking to tighten regulations on the currency derivatives market, a presidential aide said on Monday.
"Do we need new legislation? Yes," Mantega said on Tuesday.
The total exposure of companies to foreign currency derivatives could exceed 20 billion reais, according to one estimate.
($1=2.238 reais)