São Paulo agency promises lowest interest of market
O Estado de S. Paulo
The Agency of Promotion of the State of São Paulo, created after the sale of Nossa Caixa to Banco do Brasil last year, commenced yesterday its operations with R$ 200 million (US$ 105.3 million) in cash intended for the credit lines for micro and small companies. The agency, managed by the Government of São Paulo, promises to offer the lowest interest rates and a guarantee fund to assure credit risks to the financial institutions.
In this first stage, in which it will work only with resources from the State Budget, the bank will have three lines of credit. The interests vary from 0.96% to 1.3% a month - nearly one third of the rates currently practiced by the private banks. The first rate is good for the segment of short-term working capital - companies with an annual income from R$ 240 thousand (US$ 126.3 thousand) to R$ 100 million (US$ 52.6 million). The second is intended for a special line of investments for machines and equipment, utility vehicles and the opening of franchises for establishments that sell up to R$ 2.4 million (US$ 1.26 million). The term for payment varies from one to three years.
In September, the government expects the first contribution from the Brazilian Development Bank (BNDES), increasing the lines of credit. The amount has not been defined yet. The guarantee fund for small and micro enterprises will be available as of August.
In order to apply to the institution for credit, the interested parties should look for the professional associations, which will work as agents - at no additional cost. The São Paulo agency of promotion, the 14th of the Country, initiates its activities, according to the Secretary of Development, the former Governor Geraldo Alckmin, with 26 financial contracts approved, amounting to R$ 41 million (US$ 21.6 million).
In the ceremony held yesterday afternoon to register the beginning of the operations, Governor Jose Serra pointed out the interest rate of the institution and emphasized its role to stimulate the investment and the generation of jobs. "It is one of the most important initiatives of the Government. The financing at honest interest rates for the productive activity of São Paulo ".