Brasília, August 8, 2003 (Agência Brasil - ABr) - With the reduction from 60% to 45% in the amount that banks are required to transfer annually to the Central Bank (BC), of their total in demand deposits, financial institutions will now be able to count on an additional R$ 8.2 billion for loans and/or investments.

The reduction in the compulsory transfer percentage should permit a reduction in final interest rates charged for investments, loans, and special checking. The BC assessed that there is enough economic stability for inflation not to be affected and that it will be possible to be more flexible in monetary policy, exerting a direct influence on the reduction in bank spreads. (DAS)