Connect to share and comment

Brazil offers low-cost consumer loans for the poor

PlacardEnlarge
(Globalpost/GlobalPost)

Brasilia, Jun 12 (EFE).- Brazilian President Dilma Rousseff unveiled a plan Wednesday to provide 17 billion reais ($8.5 billion) worth of low-cost consumer loans to beneficiaries of a housing program, enabling them to purchase appliances and furniture.

The program is aimed at "providing more dignity" to the poorest families, who will "have access to goods that all consumers want" via loans with payment terms unavailable on the market, she said.

Rousseff used her speech to stress that the fight against inflation remains one of her administration's top economic priorities.

"Inflation is not out of control," the president said, adding that "the government has all the conditions to prevent it from getting out of control."

Urban Affairs Minister Aguinaldo Ribeiro offered details of the lending plan, saying the loans would benefit some 3.4 million families registered in a federal low-income housing plan known as "My House, My Life."

Each of these families will have access to loans of up to 5,000 reais ($2,500), which may only be used for purchases of furniture and home appliances such as refrigerators, washing machines, digital television sets and computers.

The loans will have 48-month payment terms and a 5 percent annual interest rate, which is significantly lower than current market rates of as high as 35 percent.

http://www.globalpost.com/dispatch/news/agencia-efe/130612/brazil-offers-low-cost-consumer-loans-the-poor