Published on : Tuesday, February 5, 2013
The reduction of bank interest rates, led by public banks since April last year in Brazil, has allowed micro and small enterprises to seek credit from banking institutions. Small businesses took R$ 182.3 billion in credit last year from Banco do Brasil (BB) and the Federal Savings Bank (Caixa Econômica Federal) alone, 34.7% more than in 2011.
Credit at BB amounted to R$ 122.3 billion, a 25% increase compared to R$ 98.1 billion from the previous year, and the Federal Savings Bank gave out R$ 60 billion in credit, which represented an even higher increase of 61%, compared to R$ 37.3 billion in 2011. This difference is partly explained by the Federal Savings Bank beginning the process of reducing interest rates before BB.
According to BB Vice President of Agribusiness and Small and Micro Enterprises, Osmar Dias, the main lines of credit used were for credit discount instruments, working capital and financing through the BNDES (Brazilian Social and Economic Development Bank) Card. According to him, the good results “reflect the bank’s constant efforts to support the growth of micro and small enterprises.”
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