Brazil takes steps to increase private lending

December 16th, 2010 - 11:57 am ICT by IANS  

Brasilia, Dec 16 (IANS/EFE) Brazilian Finance Minister Guido Mantega has announced a set of measures designed to increase long-term lending by private banks and increase liquidity in capital markets.Brazil’s BNDES development bank and other public institutions have provided the bulk of long-term credit since the global financial crisis prompted private lenders to draw back, the minister told a press conference in Brasilia.

“We want to enter into a new phase, so that the private sector also has the means to finance the country long-term, to share this responsibility with BNDES,” he said Wednesday.

The plan includes offering individuals who purchase long-term bonds linked to domestic infrastructure projects a tax exemption on earnings from those assets, Mantega said.

The Brazilian government wants to ensure sufficient credit to fund major infrastructure improvements as the giant South American nation prepares to host the 2014 soccer World Cup and the 2016 Summer Olympics.

Mantega was planning minister from 2003 to 2006 before taking over the finance portfolio. President-elect Dilma Rousseff has announced he will be staying on in the post when she takes office Jan 1.

–IANS/EFE
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