Brasília, June 2, 2004 (Agência Brasil) - The Minister of Cities, Olívio Dutra, affirmed that it will take 20 years for Brazil to reduce its housing shortage of 6.6 million units. "It is necessary to invest US$ 6 billion (R$ 19 billion) in federal, state, and municipal funds on housing and basic sanitation, annually, to reduce the housing deficit in Brazil."

These data were announced in the Ministry of Planning, Budget, and Management at the launching of the Housing Program for Federal Civil Servants, presented by Minister Guido Mantega.

Housing shortages are greatest among workers who earn up to five minimum wages (R$ 1,300.00, equivalent to US$ 413). 93% of the deficit is concentrated in this group. Workers who earn up to 3 minimum wages (R$ 780.00, equivalent to US$ 247) represent 83% of the total.

According to Mantega, the federal government's Mass Housing Program made US$ 1.48 billion (R$ 5 billion) available last year for the purchase of new and used homes, through lines of real estate credit offered by the Federal Savings Bank and the Bank of Brazil. In basic sanitation the government invested the equivalent of US$ 540 million (R$ 1.7 billion) in 2003.

The Minister of Planning calculates that 320 thousand houses were turned over to the low income population in 2003 and informs that 580 thousand new units will be delivered by the end of the year.

Reporter: Luciana Valle
Translator: David Silberstein