Bras\u00edlia \u2013 This Thursday (12th), the Brazilian minister of Finance, Guido Mantega, made harsh statements regarding private banks in the country. He said the banks cause a holding back of credit, charge the highest spread in the world, and want \u201cthe bill to rest on the government\u2019s back.\u201d The spread is the difference between the rate at which the funds are obtained and the rate charged from clients on granting the loan. <\/p>\n
\u201cThe rate at which the funds are obtained is 9.75% at most, and the loans are made at 30%, 40%, 50%, 80% a year, depending of the line of credit. This situation is not justified. This spread is the highest in the world,\u201d Mantega complained.<\/p>\n
According to the minister, the Brazilian economy is solid from a juridical standpoint, the laws ensure that the funds are returned to investors, and the inflation rate is low, at around 4.5% a year. Mantega considers that the fiscal situation is good, with an improvement in the primary surplus and a decline in the public debt. The minister also said consumers are being paid better wages and are eager to buy.<\/p>\n
\u201cIn the past we had some juridical insecurity, the laws did not guarantee that the funds would be returned. But now we have progressed a lot, we have the Insolvency Law and the Ownership Transfer Law, which guarantees the funds whenever a loan is made,\u201d he said.<\/p>\n
Another step forward, according to the minister, is the passing of the Positive Registry (Cadastro Positivo), which lists good payers. According to him, when the proposal was to be voted in Congress, the banks guaranteed that once the registry was passed, credit would be cheaper. <\/p>\n
To Mantega, in addition to lowering the spread, there is the possibility of private banks lowering the rates offered to account holders. \u201cThe profitability of banks remains high. Last year, banks [in Brazil] were among the most lucrative in the world. I think that is good, banks are allowed to profit, but from credit, from economic loaning activity, without afflicting the consumer.\u201d<\/p>\n
The minister criticized the president of the Brazilian Federation of Banks (Febraban), Murilo Portugal, who attended a meeting at the Ministry of Finance on Tuesday (10th). According to Mantega, instead of presenting solutions, such as increasing credit, the organization called on the government for new tax breaks. <\/p>\n
\u201cIf the banks are so lucrative, they do have margin to lower rates and increase the volume of credit,\u201d said the minister. <\/p>\n
According to Mantega, the government has a permanent positive agenda to improve economic conditions, with measures such as increased safety in concession of credit by banks. The minister complained that still, financial institutions are calling for more and more \u201csafety and measures,\u201d and they want \u201cthe government to pay the bill.\u201d<\/p>\n
\u201cIf they were not profiting, then we could lower the taxes and tamper with the compulsory [deposit, made to the Central Bank]. But they do have a margin to increase credit. it can be done, and we will keep on with our positive agenda to improve the situation.\u201d <\/p>\n
In the last few days, the Bank of Brazil and the Federal Savings Bank, two government-controlled institutions, announced that interest rates on credit lines will be lowered.<\/p>\n
*Translated by Gabriel Pomerancblum<\/b><\/p>\n","protected":false},"excerpt":{"rendered":"
Guido Mantega stated that Brazil\u2019s financial institutions charge the world\u2019s highest spread and \u2018want the bill to rest on the government\u2019s back.\u2019 He is pushing for lower interest rates for financing.<\/p>\n","protected":false},"author":2315,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[91],"tags":[],"class_list":{"0":"post-41182","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-economy"},"wps_subtitle":"Guido Mantega stated that Brazil\u2019s financial institutions charge the world\u2019s highest spread and \u2018want the bill to rest on the government\u2019s back.\u2019 He is pushing for lower interest rates for financing.","_links":{"self":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/41182","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/users\/2315"}],"replies":[{"embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/comments?post=41182"}],"version-history":[{"count":0,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/posts\/41182\/revisions"}],"wp:attachment":[{"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/media?parent=41182"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/categories?post=41182"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/anba.com.br\/en\/wp-json\/wp\/v2\/tags?post=41182"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}