Brasília, 9/18/2003 (Agência Brasil - ABr) - The Federal Mortgage and Savings Bank (Caixa Econômica Federal) and the Banco do Brasil have announced that they will make loans for the purchase of home appliances worth up to R$900. Payment of the loans can be made in up to 36 months, in installments as low as R$20. The decision to open the credit line was made by the council that runs the Worker Assistance Fund (Codefat), which explains that the objective of the measure is to create jobs and income.

The two banks have also been authorized to make personal loans to workers. According to minister of Finance, Antonio Palocci, that may result in a smaller bank spread and interest rates, depending on demand. Interest charged on these loans will be based on market conditions, the amount of the loan and the borrower's salary. (AB)