Brazil launches new credit line to stimulate micro, small enterprises

Source:Xinhua Published: 2016/10/6 10:04:21

Brazilian President Michel Temer announced Wednesday the opening of a new credit line worth 30 million reais ($9.31 million) with low interest rates to stimulate growth among the country's micro and small enterprises.

In a speech in honor of Brazil's National Day of Micro and Small Companies, Temer said that micro and small enterprises are often underestimated but have "a giant" impact on the economy, accounting for 52 percent of GDP and 41 percent of total salary income.

"The reforms we are putting before Congress are destined to help our country grow and to incentivize micro, small and medium enterprises," said Temer.

In his recent trip to China for the G20 Summit, the president was quoted as saying that the number of micro, small and medium enterprises in China is "fantastic," praising the fact that some of these succeed in producing enough goods to export.

This new credit line will have a very low interest rate, which the government says will be 30 percent lower than usual on the market. It will be accessible to all companies having annual revenue of under 3.6 million reais (1.1 million US dollars).

The money from the credit line is to be used on investments, equipment modernization, buying of raw materials, and the payment of suppliers and taxes.

Posted in: Americas

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