Brazil announces US$20.4 billion plan to boost credit

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.

Brazil's Finance Minister, Nelson Barbosa. Photo: Folha de S. Paulo.

Brazil’s Finance Minister, Nelson Barbosa. Photo: Folha de S. Paulo.

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.

Source:

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

Innovation Norway is responsible for promoting the Norwegian industry abroad. Our office in Rio de Janeiro manages Innovation House Rio, our business incubator office, and helps Norwegian companies in their efforts towards the Brazilian market.

Tagged with: , ,
Posted in Brazil

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: