General Motors do Brasil Ltda is evaluating the possibility of turning to government financial behemoth BNDES for financing its billion-dollar investment plan, an executive with close ties to GM's regional chief executive said Wednesday.

"We are considering BNDES, private banks and Banrisul," the executive said. "We are not in the market for immediate financing."

Banrisul is the largest state-owned bank in south Brazil.

GM plans $1 billion in fleet upgrades and new models in its 2009 to 2012 investment plan. Some of the money would come from local GM resources.

General Motors Co. (GM) in Detroit does not fund General Motors do Brasil operations.

Brazil's National Development Bank, BNDES, is a low-interest investment bank. Over the last several months, BNDES has acted as lender of last resort when private banks have been cautious with their lending practices.

-By Kenneth Rapoza, Dow Jones Newswires, 5511-2847-4541, kenneth.rapoza@dowjones.com