Free Trial

Brazil Loan Rules Aimed at Reducing Cost of Credit

BRAZIL
  • Late yesterday, the Brazilian government approved a set of legislation aimed at reducing non-payment risks and pressuring the cost of credit across the economy. The passage of the new rules was largely as expected given the approval in the Senate, and followed pressure on lawmakers from finance minister Haddad, who’s been tasked with boosting economic growth in the wake of a multi-year tightening cycle.
  • The rules simplify various processes surrounding the use of assets used as collateral – and will now allow consumers to use a single asset as collateral for multiple loans. The steps follow the passage of legislation earlier in the week that capped credit card rates at 100%.
  • Separately, Haddad has is still seeking solutions for the IOE tax, aiming to streamline the processes and regulations surrounding the tax system. Reportedly he is consulting and providing technical support for Congress to make the best decision on the IOE tax structure.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.