Americas

Americas

Brazilian president slams high interest rates

16 May 2012 04:28 (UTC +04:00)

Baku-APA. Brazil’s President Dilma Rousseff Tuesday criticized Brazilian banks for charging consumers and companies high interest rates, saying they were one of the country’s main obstacles to growth, APA reports quoting Xinhua.

Speaking at a mayors’ meeting in Brasilia, Rousseff said the banks charged compound interest rates that were "incompatible with those charged internationally, and that jeopardizes the country’s growth."

Last month, the Brazilian government launched a process to lower interest rates charged by public banks, to promote cheaper loans by private institutions and reduce the banking "spread" (the gap between the price of borrowed money and lent money).

Nevertheless, the slight decrease in rates announced by the private banks has dissatisfied the government.

Rousseff stressed that among the factors hindering economic growth were the exchange rate and elevated taxes.

She added Brazil needs to be prepared for a possible extended world economic crisis.

"The crisis affecting industrialized countries might last five, six, seven years" before subsiding, said Rousseff.