Brazil seeking to stave off slump with £6bn commercial credit
Brazil’s government yesterday unveiled a flurry of economic measures as the country teetered on the brink of a recession.
As a tightly contested presidential election drew closer, the central bank increased the amount of capital available for commercial loans by at least 25bn reals (£6.65bn), the second such move in less than a month.
The total potential stimulus offered by the central bank since July adds up to 70bn reals.
Finance minister Guido Mantega also announced steps to boost mortgage and car loans, including the creation of a new debt instrument to support property purchases.
“This will irrigate some segments of the economy which have completely run out of credit,” Mantega said. “Credit retreated too sharply but will improve, though at a gradual pace.”