Brasília, October 6, 2003 (Agência Brasil - ABr) - President Luiz Inácio Lula da Silva recommended today that banks open their vaults and put money "in the hands of the people," to stimulate consumption and employment. The President, together with Queen Sofia of Spain, took part in the inauguration of the 3º International Forum on Microcredit, which is being held in Brasília through Wednesday (8). With respect to microcredit, Lula told the bankers not to worry about lending money, because "poor people repay - they won't vanish, since, for one thing, they don't have anywhere to go."
For the President, money exists in order to circulate, and it belongs in the hands of the poorest segments of the population, "especially in today's world of exclusion." Lula gave the Federal Savings Here program as an example of the extent of the low income population's demand for credit. According to him, the program, which serves individuals who don't have bank accounts, was expected to attract a million people by the end of the year; 700 thousand have already signed up. The President recalled that, since the beginning of his term in office, he has tried to alert Brazilian society to adopt a different approach, to be creative, since money is scarce. In Lula's opinion the financial sector, public and private, has now decided to assume this responsibility with low-income members of society.
Queen Sofia of Spain acknowledged President Lula's effort to combat poverty, through policies that include microcredit. She informed that, globally, this program currently benefits 50 million people, who thus escape humiliation and poverty. For Lula, the Queen's participation at the opening of the forum signifies her country's commitment to helping other peoples in their quest for citizenship.
The Microcredit Program instituted by the Brazilian government determines that banks devote 2% of their demand deposits for this purpose. This year's total may reach R$ 1.1 billion. Those who are eligible to receive microcredit include low-income individuals whose bank balance is less than R$ 1 thousand; individuals enrolled in the program, Fund to Combat and Erradicate Poverty; and micro-entrepreneurs, either individuals or firms. The maximum amounts for loans are R$ 500 for individuals and R$ 1000 for micro-entrepreneurs. Monthly interest rates cannot exceed 2%. (DAS)
