The Central Bank of Brazil announced that companies will be able to use real estate as collateral for additional loans, media reports said. The new programme could provide up to $11.6 billion.
Three measures was taken by the central bank to support the economy by injecting hundreds of billions of reais.
It will allow banks that extend loans to small and medium size enterprises to reduce reserve requirements, lower banks’ requirements for contingent liabilities provisions and allow firms to use real estate as collateral for new loans, media reports said/
It is reported that the three measures could individually free up to $10.8 billion, 127 billion reais and 60 billion reais. Residential property prices in Brazil increased in May, a month after social isolation was introduced as a measure to curb the spread of Covid-19.
According to FipeZap index, there was a 0.20 percent increase in April. During the period between January and April, property prices collectively reached a nominal high of 0.69 percent, media reports said.
More recently, Sergio Bermudes Advogados has helped Brazilian real estate company João Fortes Engenharia get approval to restructure 1.3 billion Brazilian reais of debt. João Fortes Engenharia sought approval from Rio de Janeiro’s Court of Justice, media reports said.