Lending rises in Brazil's property sector
By James Roberts

Lending rises in Brazil's property sector

There has been a significant increase in the level of lending to people buying a home in Brazil.

In its weekly global newsletter, the Royal Institution of Chartered Surveyors (Rics) revealed secured lending in Brazil's residential property sector has increased by 42 per cent in the past 12 months.

According to the organisation, this has partly been driven by government initiatives to encourage public sector banks to offer mortgages at reduced rates to those on a low income.

This is just one of the measures the country has taken in a bid to stimulate economic growth, which is beginning to stall. Rics highlighted the International Monetary Fund's decision this month to cut its growth forecast for the nation by 0.6 per cent.

Earlier this month, the Economist noted that, although the level of borrowing in Brazil has risen substantially in recent years, the low starting point means loans are still just a small percentage of gross domestic product (GDP).

The news provider cited mortgage lending as an example, where the total amount borrowed stands at around five per cent of the country's GDP.
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