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Brazil Finance Minister Asks BNDES to Cheapen Loans, Folha Says

Brazil’s Finance Minister Guido Mantega has asked Brazil’s state development bank BNDES to cut the spread it levies on working capital loans, Folha de S.Paulo reported, without saying where it got the information.

Mantega and BNDES’s president, Luciano Coutinho, are studying how to guarantee that lower rates reach end borrowers, the Sao Paulo-based newspaper said today. Working capital loans below 10 million reais ($5.44 million) are often disbursed through commercial banks, which add their own spreads, making financing more expensive, according to the article.

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