Good morning! Today, we talk about Lula’s latest move to foster the credit market. A spike in land conflicts in rural Brazil. And funding for a federal public security system.
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Lula’s new bet to jolt the economy
The Luiz Inácio Lula da Silva administration launched a new package to increase Brazilians’ purchasing power. The plan includes microcredit lines and debt renegotiation programs for low-income citizens and a new line of credit for middle-class families interested in buying a home. The details of the scheme, such as which banks will participate or how much debt can be renegotiated, have yet to be fully explained.
👉 Why it matters. Increasing credit availability has been one of the government’s obsessions since last year. Credit is seen as a way to jolt the economy, foster consumption, and generate economic growth.
- President Lula’s moves to heat up the credit market include programs for low-income Brazilians and small firms to renegotiate their liabilities, discussions of ways to reduce companies’ borrowing costs, and relentless pressure on...