Personal Loans at 59% Interest Rate: The Lowest Brazil Has Seen in 12 Years

Even though they remain high, as the head of the Economic Department of Brazil’s Central Bank (BC), Altamir Lopes admits, the interest rates charged for personal loans are the lowest since the Real Plan was first adopted in July, 1994.

The average annual interest rate charged for such loans in March was 59%. These data are contained in the monthly report on Monetary Policy and Financial System Credit Operations, issued by the BC on Tuesday, April 25.

Another index that remains high is the spread, the difference between what it costs banks to obtain money and what they charge to lend it. The bank spread for individuals was 44% in March.

The report demonstrates that bank spreads have been growing, despite the cuts made by the BC in the annualized overnight benchmark interest rate, used in the Special System of Liquidation and Custody (SELIC).

Albeit high and trending upwards, the current bank spread is still close to its historic floor. According to the report, the lowest bank spread in the past ten years was 42.6%, in April, 2005.

Interest rates on bank loans to corporate entities were also near their historic lows. The average annual rate charged in March, 30.7%, was the lowest since September, 1994.

Agência Brasil

Tags:

You May Also Like

Gaza Gets All Attention, But Brazil Favela’s Tragedy Is Much More Gruesome

It’s no great assumption that there is disproportionate coverage on the Palestinian-Israeli conflict. But ...

Industrial Production in Brazil Falls to Lowest Level in Four Years

Brazil’s industrial production dropped last June, remaining at 39.6 points from a previous 48.4 ...

Call for Papers: Brazil Has US$ 13 Million for AIDS and STD Research

Brazil’s Ministry of Health and the UNESCO (United Nations Education, Science, and Culture Organization) ...

After 5 Nights of Unrest Brazilian Police Have Killed 87 in Sí£o Paulo

While the violence has been lower since Monday night, May 15, in the streets ...

Brazil Joins World on Mourning for Auschwitz

The Brazilian Ministry of Foreign Relations released a note, January 27, on the occasion ...

Half of Brazil Agriexports Goes to Emerging Countries. China Gets 8%

The share of developing nations in purchases of Brazilian agricultural products rose from 39.6% ...

Brazil’s Industry Output Is Up 3.2% Thanks to Exports

Brazilian industrial production increased in 12 of the 14 areas included in the Regional ...

Brazil: US Confederates Find a Home

The Stanleys departed for Brazil on the rainy morning of April 6, 1876. They ...

Brazil Gets Ready for War with 12 Mirage Fighter Planes

Brazil purchased twelve French combat aircraft Mirage 2000 during the official visit of President ...