Rio, September 16, 2003 (Agência Brasil - ABr) - Sustainable economic growth depends upon the expansion of bank credit, both for large firms and low-income families. This is the conviction of the president of the Federal Savings Bank (CEF), Jorge Mattoso. In his opinion , the challenge that faces the Brazilian financial system in terms of economic growth is to enable banks to make more credit available to society. Mattoso explained that the expansion of credit will mean a big stimulus for production and investments in durable and non-durable goods industries.

Mattoso believes that the banks will be obliged to make more credit available, when interest rates fall. He foresees that the prime interest rate (Selic), will decline to 18% by the end of the year and 13-14% next year.

According to the president of the CEF, "it is good business" for the institution to set up bank accounts for the low-income population, without requiring a minimum deposit or proof of income. He informed that, up to Friday, 550 thousand accounts of this type were opened at the Federal Savings Bank.

The CEF currently has 9 thousand lottery shops and 2,108 banking service representatives, such as stores and supermarkets, which are opening this type of account and receiving payments. "We want to end the year with 4,300 banking service representatives," he declared. (DAS)