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Brazil to Give Small Businesses Up to US$ 1,900 Loans |
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Written by Carolina Pimentel
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Monday, 25 April 2005 |
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Brazilian President Luiz Inácio Lula da Silva approved, today, a Provisional Measure (MP) creating the National Program for Oriented Productive Microcredit (PMC).
The idea is to offer a credit line to small entrepreneurs whose annual earnings do not exceed US$ 23.7 thousand (60 thousand reais).
The loans can be for as much as US$ 1.9 thousand (5 thousand reais), and interest rates will run no higher than 4% per month. The loans will be distributed through Civil Society Organizations in the Public Interest (OSCIPs), credit cooperatives, micro-business credit societies, and development agencies.
Funds for the program will come from the Workers' Assistance Fund (FAT) and a 2% share of the compulsory reserves that public and private banks are required to deposit in the Central Bank.
It will be up to the Ministry of Labor to coordinate the Advisory Committee that will decide on the loans and the liberation of the resources - under the responsibility of the National Monetary Council and the FAT Deliberative Council.
The Ministries of Finance and Social Development will also be part of the Committee. In addition, the credit operators will have to submit a plan to the Committee for the application of the resources.
ABr
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