The total value of loans made in Brazil in January was US$ 283.406 billion (R$ 608.87 billion). This amount is equivalent to 31% of the Gross Domestic Product (GDP), the sum of wealth produced in the country.
According to the figures announced Wednesday, February 22, by the Central Bank (BC), credit was up 20% between January, 2004, and January, 2005.
Despite this growth, when it comes to credit granted by the country’s financial system, "Brazil lends very little in comparison with other countries," in the assessment of Erivaldo Rodrigues, president of the Austin Rating economic analysis firm.
"Ours is one of the worst proportions in the world. In China and the United States the percentage is 120%. In Chile, which is a small economy, but one that grows more than ours, it is 65%. In Bolivia, which has an economy far inferior to ours, the percentage is 55%," he affirmed.
ABr
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Guest
Much worse than that !
Brazilian banks borrow money at the government TLJP rate of 9 % and lends money back at anything between 40 % to 80 % and up to 150 % per year for overdraft.
OR A GROSS profit of anything between 31 to 140 % annually per loan they make !
A WORLD RECORD !!!!! not a single country come even close to that rates differentials !
Furthermore despite the recent decline of the Brazilian rates, Brazilian banks DID NOT REDUCE THEIR RATES !!!!!!!!!
HOW DOES BRAZIL TO HAVE REAL INTERNAL DEMAND, REAL INTERNAL GROWTH WITH BANK LENDING RATES THAT HIGH ?????
How come that Lula and his junkies, did not yet put a cap on the rates banks are charging ???? Even Chavez did it !!!!!
This is just INSANE !
Guest
I can relate!!
Having a pessoa juridica here with foreign partners that are making a foreign investment in brazil, which in the last 18 months has surpassed 2 million dollars, and has assets of over 1.3 million dollars, the bank in which we have our account will not give us one cent in any type of credit, including a “check especial” which is normal for any person or business. They say it’s because we don’t as of yet have “faturamento”, or the company is not as of yet taking in money, as we are in the investment stage. This is completely and utterly ridiculous. A person that makes $400 a month has at least a line of credit in his checking account, but a company with over a million dollars in assets gets nothing?