The Brazilian government announced a series of measures to boost production and recover the country’s economic growth. The measures consist of investments in infrastructure and more available credit from state-run banks to small and medium sized companies and for important economic sectors such as agriculture and construction.
The announcement was made during a meeting of the Economic and Social Development Council, which gathers 92 participants from the private sector, labor unions and the civil society.
The credit injection amounts to BRL 83 billion (USD 20.4 billion), and according to Brazil’s Finance Minister, the measures will not incur extra costs for the government. The target sectors are infrastructure, construction. agriculture and SMB’s.
In addition to the credit boost, the government also intends to approve a measure that would allow laid off workers to use their workers’ pension fund (FGTS) as guarantee to obtain loans. By that, the government aims to stimulate cheaper, consigned credit to private sector workers by generating BRL 17 billion in credit. The measure will still be submitted to approval by the Congress.
The Rio Times – Brazil Announces R$83Bln Plan to Jumpstart Economy
Folha de S. Paulo – Governo anuncia R$ 83 bi de crédito; FGTS vira garantia de consignado