Brazil’s president steps up pressure on banks to lower rates

The Wall Street Journal, 04/30/2012

Brazil’s President Dilma Rousseff Monday said interest rates on loans in Brazil are still too high, keeping up the pressure on private-sector banks to lower rates further.

“It is inadmissible that Brazil, which has one of the most solid and profitable financial systems, continues to have some of the highest interest rates in the world,” Rousseff said in a television address ahead of the May Day holiday.

The president and other administration officials have complained loudly for months that, despite significant base rate cuts by the central bank, interest rates on loans for companies and for consumers have barely fallen. The banks said that a high tax burden, high labor costs and difficulties collecting on bad loans make lending more expensive in Brazil than in other parts of the world.

Read more…

About these ads

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Follow

Get every new post delivered to your Inbox.

Join 5,807 other followers

%d bloggers like this: