Bank of Brazil to Amplify Presence in the Low Income Housing Sector
The Bank of Brazil (Banco do Brasil) has stated its intention to expand in being a mortgage provider for the country´s low income housing programme – the Minha Casa, Minha Vida (My House, My Life). Announced by planning Minister Miriam Belchior, the bank´s priority is to focus on being the prominent ´financial operator for families earning up to three times the minimum wage.´
The institution started lending under the remit of the programme in 2009, focused on Brazilians earning between 3 and 10 times the minimum salary (between R$ 1,635 and R$ 5,450) – funding over 4,000 housing units, according to the Brazilian Construction Industry’s Chamber of Commerce.
Operations will fully commence in 2012 – with the remainder of 2011 being used to mount a strategy of implementation that will complement the work of the Caixa Econômica Federal.
Nevertheless, the news is likely to make little difference to the Brazilian real estate´s industry opinion of the programme – please click here to access an article written for the Nigeria-Brazil Chamber of Commerce (and the Fez Tá Pronto construction programme business plan) entitled ‘The Inefficiencies of the´Minha Casa, Minha Vida´ Housing Programme’.
