Brasília, August 19, 2003 (Agência Brasil - ABr) - On Monday (18), the Bank of Brazil inaugurated a low cost line of credit for retirees and pensioners who receive their INSS (National Social Security Institute) benefits through the bank. The program should provide assistance to around two million people.

The loan corresponds to the amount of the monthly benefit, but it should not exceed two minimum wages, equivalent to R$ 480.00. The funds are available at once through the bank's 35 thousand automatic terminals scattered across the country. Recipients will have 6-12 months to repay the loans. A 2% monthly interest rate will be charged.

According to the Minister of Social Security and Social Assistance, Ricardo Berzoini, who attending the inauguration ceremony, the government is removing all restrictions so that the Bank of Brazil can act with security and good judgement to fulfill its social mission together with its role as a financial institution essential to the country's economy.

The Bank of Brazil also intends to establish credit lines for people who have small savings accounts (between R$ 20.00 and R$ 200.00), as well as for people engaged in the informal sector of the economy, through the Popular Bank of Brazil, set up to deal with people who have no proof of income. (DAS)