Wellton Máximo and Mariana Branco   Reporters Agência Brasil

Brasilia – The vice president of the National Association of Financial Executives (“Anefac”), Miguel de Oliveira, has a very different opinion of indebtedness, payment default rates and the credit market. Very different from the opinions of former Central Bank director, Carlos Eduardo de Freitas, or academic, Samy Dana, of the Getulio Vargas Foundation. Oliveira says he believes that growth will be sparked as payment default rates fall and credit lines continue to expand.

“A very large segment of the population is still outside the credit market. As long as we are creating jobs and income is rising the tendency is for payment delinquency to fall,” says Olivieira. But, he adds a caveat: what he said is true as long as the international crisis does not get worse.

As for domestic financial institution interest rates, Oliveira says banks are doing their part by factoring in Selic reductions. But the problems, he says, is that fully 29% of the bank spread is due to payment delinquency.

Allen Bennett – translator/editor The News in English

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