Ministry of Economy to launch credit stimulus measures

The federal government should launch, next week, a set of measures to stimulate the credit market in order to reduce interest rates on financing.

The information was confirmed this Friday (19) by the secretary of Economic Policy, Adolfo Sachsida. THE CNN, the secretary guaranteed that there is no provision for measures with subsidized interest or at any cost to the National Treasury coffers.

“There is not a penny of public money. The measures are to institute the legal frameworks to improve the guarantees of credit operations, the allocation of resources with lower interest rates”, said Sachsida.

The secretary declined to give further details, but confirmed the announcement next week, at a ceremony with the participation of other ministries and public bodies involved in the elaboration of the measures. Adolfo Sachsida also said that provisional measures and bills will be sent to promote changes in the credit market.

The government has been working on building this change since 2019, but has not been able to move forward so far. The idea is to promote the fractioning of guarantees used in financing operations.

Today, when an asset or equity is used as a guarantee for taking out credit, it is locked in the financial institution that grants it. With the changes that will be announced, a company or a person will be able to use the same asset to negotiate lower interest rates on other operations.

Sources participating in the design of the measures confirmed the CNN that the figure of the Guarantee Management Institution will be created, a legal framework for the financial sector to organize itself and assemble the managers.

The lack of guarantees is identified as one of the biggest obstacles in the credit market in Brazil, as it makes financing more expensive and makes long-term projects unfeasible.

A study carried out by the Central Bank at the beginning of the year showed the size of the difference between the operations: a non-consigned personal loan has an interest rate more than 92 percentage points higher than that charged for a secured loan.

Since adopting fiduciary sale in the early 2000s, the Brazilian credit market has more than doubled, especially in mortgages and automobiles. Payroll-deductible credit was the next change, and it also brought down interest rates and increased the volume of operations.

In the real estate market, loans with guarantees correspond to less than half of the concessions. In the United States, this modality exceeds 90% on the market.

The government hopes to extend the possibility of guarantees for any type of good, such as machinery and company inventories, for example. The same would apply to personal finance.

Reference: CNN Brasil

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