Brazil’s Assurance: We’re Not Bankrupt, We’re Part of Solution

Bank of Brazil branch Brazil's new strategy for maintaining investment and expanding credit is reducing interest rates on loans granted by the Bank of Brazil and the Caixa Econômica Federal (Federal Savings Bank). The announcement was made by the Chief of Staff of the Presidency, minister Dilma Rousseff.

"The president is extremely worried about the cost of credit, and is adopting all of the necessary measures in order to reduce the spreads (difference between the interest rates that banks receive and what they loan to third parties) of public banks," said the minister upon attending the 90th anniversary of Farmanguinhos, a medication manufacturing unit of the Oswaldo Cruz Foundation (Fiocruz).

According to Dilma, president Lula wants to implement an interest rate policy compatible with the reality of the country, especially concerning spreads.

"There has been no increase in the amount of interest received in relation to what is being charged when equal amounts of capital are lent. We want to expand our investment capacity, rather than follow old recipes that have been used before, such as reducing credit, consumption and investment," said the minister.

She assured that the Growth Acceleration Program (PAC) of the Brazilian federal government is going to be maintained, as well as investment in the pre-salt area, among others. "We are not bankrupt. We are not part of the problem, we are part of the solution."

The Brazilian government announced in Brasí­lia (capital of Brazil) new measures aimed at boosting the economy, among them new, lower income tax rates, reduction of the Financial Operations Tax (IOF) in credit operations for natural persons, reduction of the Industrialized Products Tax (IPI) for the auto industry and dollar auctions by the Central Bank of Brazil using foreign reserve funds. Tax waiver from fiscal measures should total 8.4 billion Brazilian reais (US$ 3.4 billion).

Tags:

  • Show Comments (0)

Your email address will not be published. Required fields are marked *

comment *

  • name *

  • email *

  • website *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Ads

You May Also Like

Brazilian Congress Inquiry on Bribery to Summon 40 People

The Commission of Inquiry of the Comptroller-General’s office of Brazilian Chamber of Deputies approved ...

Giant French Lab Creates Cheaper Drugs for Brazil and South

In his address to the closing plenary session of BioVision – the World Life ...

A Joint Force to Fight Amazon and Other Fires

Bilateral and multilateral cooperation is crucial to combat and manage forest fires in the ...

Second Brazilian Mission Will Press London on Subway Killing

Brazil will send another mission to the United Kingdom to investigate the death of ...

Fed Up with Brazil and Brazilians Google May Close or Block Orkut

Brazilians make up 65% of Orkut’s 26.5 million subscribers. As some people know Orkut ...

A Mere 27% of Brazilians Have Fluoridated Water

Only 50 million people in Brazil from a population of 184 million, have access ...

Private Colleges Open 82,000 Places for the Poor in Brazil

Of Brazil’s 1,652 private higher education institutions, 1,001 have already adhered to the University ...

Lula Hints He Might Run for President Again in 2014 or Later

Luiz Inácio Lula da Silva, Brazil’s outgoing president, said he might run for president ...

The Ones to Beat

Brazilian Hélio Castroneves became the first Indianapolis driver in 31 years to successfully defend ...

Despite Crisis Sale of Oil Products Grows 3% for Brazilian Petrobras

At least for now, the international financial crisis has not affected Brazilian state-controlled oil ...