12/03/2008 10h06
FGTS releases another US$ 1.3 billion for the building sector
Valor Econômico - 12/03/2008
In 2009, the construction sector will have a new credit line from the Employment Security Fund (FGTS), in the amount of R$ 3 billion (US$ 1.3 billion). The amount was approved yesterday by the Trustee Council of the fund and it is another measure negotiated by the sector with the government in order to reduce the effects of the international financial crisis on the building industry in Brazil. The decision was announced by the Minister of Labor and president of the Trustee Council of the FGTS, Carlos Lupi. The special line is not intended for traditional financings but for operations like the purchase of debentures issued by the building companies or the acquisition of holdings in investment funds related to real estate undertakings (real estate or credit right funds). The new line may finance up to 80% of the undertakings. The interest rate will depend upon the selling price of the real estate to be constructed. For undertakings with constructions of up to R$ 130 thousand each (US$ 58 thousand), the FGTS will charge building companies interest of 7% a year plus the Reference Rate. In case of properties of higher value, the rate goes up to 9% a year plus the Reference Rate. The spread of
Caixa Econômica Federal, financial agent of the FGTS, at nearly 2.16% a year is not included in these figures. The Trustee Council has also decided to reduce the interest rate of the direct loans to the final borrower with a gross household income of up to R$ 2 thousand (US$ 889). Instead of the Reference Rate plus 6% a year, these people will be able to get a mortgage from the FGTS paying the Reference Rate plus 5% a year (excluding the Caixa spread). Lupi emphasized that if the borrower is a holder of an FGTS account the rate falls another half percent point a year, to 4.5% a year plus the Reference Rate.
