Consumers paid an average annual rate of 52.7% in 2008 for personal loans in Brazil

Discussion in 'Economics' started by ASusilovic, Apr 8, 2009.

  1. Most banking stocks in Brazil fell Thursday after the country's president ousted the head of a federally run bank, spiking fears of greater government control of the sector.

    ...

    Consumers who took out personal loans paid an average annual rate of 52.7% in 2008, according to data available on the central bank's Web site.
    The benchmark lending rate currently stands at 11.25%.
    "The five biggest banks control more than 80% of credit in Brazil. We need more competition, and not intervention," said Freitas, who also cited hefty taxes as another reason for high spreads between deposits and loans.


    The moves at Banco do Brazil came the same day that the government said consumer prices in March rose 0.2%, compared with an increase of 0.55% in February, as costs for tuition eased. The March reading was in line with consensus estimates.
    Annual inflation fell to 5.6% from 5.9% at the end of February, which falls within the upper limit of the central bank's inflation target of 6.5%. The figures could help sway the central bank to continue cutting interest rates.

    http://www.marketwatch.com/news/sto...D6-DC52-48B7-BB28-C57E3DAC4677}&dist=hplatest

    Anybody complaining about 14 % APR ?

    :D :D :D