Brazil’s main banking lobby is going to deliver proposals aimed at reducing loan interest rates to the newly President-elect Jair Bolsonaro once he is inaugurated in January.

The information was told to Reuters by Bradesco’s Chief Executive, Octavio de Lazari, who explained that the proposals from industry group Febraban will include revamping brazil’s bankruptcy law and reducing mandatory notary services that elevate credit costs.

According to Reuters, the move comes as Brazil’s central bank has been looking for ways to cut consumer interest rates that average around 260% annually for revolving credit lines (central bank data). That figure compares with 6.5% for the country’s benchamark Selic rate.

Lazari also said that Bradesco expects its loan book to grow at a faster pace in 2019 than this year, as the Brazilian economy accelerates. Its corporate loan book is expected to grow close to 10% in 2019, and credit to individuals may grow at even higher rates, he said.

Original Story: Reuters | Authors: Tatiana Bautzer, Carolina Mandl, Rodrigo Campos
Photo: Banco Central do Brasil
Edition:Prime Yield