The president of Brazil, Fernando Henrique Cardoso, has said loans worth thirty million dollars will be allocated to landless farmers in the drought-stricken northeast of the country.

Speaking in his weekly radio programme, Mr Cardoso said the Brazilian government was doing all it could to help the victims.

With presidential elections four months away, Mr Cardoso, who is facing criticism over his handling of the drought crisis, has seen his support fall sharply in opinion polls.