This excerpt taken from the PBR 20-F filed May 22, 2009.
PifCos Short-Term Borrowings
PifCos short-term borrowings are denominated in U.S. dollars and consist of short-term lines of credit, loans from financing institutions and the short-term portion of long-term lines of credit and loans from financing institutions. At December 31, 2008, PifCo had short-term borrowings of U.S.$143 million, consisting of the short-term portion of long-term lines of credit and loans from financing institutions, compared to U.S.$311 million of short-term borrowings at December 31, 2007. The weighted average annual interest rate on these short-term borrowings was 3.59% at December 31, 2008 compared to 5.59% at December 31, 2007. At December 31, 2008, PifCo had no short-term lines of credit or loans from financing institutions outstanding.
The short-term portion of PifCos notes payable to related parties consists of notes payable to us, and increased 5.7% to U.S.$25,353 million at December 31, 2008, from U.S.$23,978 million at December 31, 2007, primarily as a result of PifCos short-term financing needs. This increase was partially offset by the assumption by Brasoil of PifCos obligations under the notes payable to us in the amount of U.S.$8,231 million, as a consequence of the transfer of PifCos notes receivable to Brasoil in the same amount.