São Paulo, 6/26/2003 (Agência Brasil - ABr) - The chief economist at the Brazilian Federation of Banks (Febraban), Roberto Luiz Troster, says that the private banking sector wants to join the government's plan to strengthen microcredit. "The banking vocation is to make loans, whether the banks are in the public or the private sector," said Troster. "By making credit cheaper in special operations you make room for more clients. More clients are always welcome," he declared.

Troster went on to say that the microcredit package announced by the government would be positive for the economy. "Countries do not grow without developing their financial system first. This is a step in the right direction," he said.

However, Troster said he did not believe increasing the supply of microcredit would have an effect on interest rates, except for the microcredit clients. "If the same measures, such as mandatory reserve exemptions and reduced PIS/Cofins taxes, were extended to all banking operations, then it would certainly be possible to reduce interest rates," he said. (AB)