Brazilian state bank freezes part of housing subsidy program

Brazil’s state bank Caixa Económica Federal has suspended the issuance of some new home loans in the “Minha Casa, Minha Vida” housing subsidy program.

In a statement to Reuteurs, the bank said it was not extending new loans in the so-called “bracket 1.5” of the subsidy program until the end of this year due do budgetary restrictios. Loans in that segment, which offer favourable terms to families earning up to 2,600 reais ($690) per month, will be restarted next year, the bank explained.

The announcement of this move knocked the shares of homebuilders and dealing a blow to low income consumers who rely on the program.

Original Story: Reuteurs
Photo: wikimedia commons /Gaf.arq
Edition:Prime Yield