government will launch measures to unlock the real estate securities market

The Minister of Finance, Fernando Haddad (PT)stated, this Wednesday (27), that the government of President Luiz Inácio Lula da Silva (PT) will launch, next week, measures to unlock the real estate market in the country.

In an interview with Itatiaia radio, in Minas Gerais, Haddad said that the actions will create a “very robust” secondary market for real estate securities, capable of generating greater leverage in operations, but did not go into details.

“We are going to take measures, next week, that will unlock this real estate market. We are going to create a very robust secondary market for real estate securities, to ensure that real estate credit operates in Brazil and can be multiplied many times over,” he stated.

In the conversation, Haddad highlighted that, in other countries, a receivable with property guarantee is easily negotiated in the market.

“This asset has a very robust secondary market in the developed world, it does not remain in the bank’s portfolio. The bank soon resells it and makes room on its balance sheet to finance another property”, he compared.

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According to the minister, real estate credit in some countries exceeds that of Brazil by 10 times. “So imagine the growth potential of the Brazilian economy from civil construction”, he suggested.

The new rules to boost the real estate market, according to Haddad, were discussed with sector leaders. “I think that the middle class, the working class, will have good news to celebrate in the near future with the issuance of this measure,” he said.

“Credit from A to Z”

The government’s idea is that the changes will be included in a provisional measure that will deal more broadly with the credit market. The new foreign exchange hedging rules, announced in February, during a meeting between finance ministers and central bank presidents from countries in the G20 − group of the 20 largest economies on the planet, which is under the presidency of Brazil, will also be part of the text.

According to Haddad, the MPV will have a device to authorize the renegotiation of debt from the National Support Program for Micro and Small Businesses (Pronampe), created in the context of the Covid-19 pandemic.

“Today there are many people in default who are unable to renegotiate their debts. It is a defect in Pronampe that needs to be corrected by the current government”, said the minister.

Finally, the provisional measure will bring microcredit modalities for Bolsa Família beneficiaries who want to undertake and leave the social program.

“There are many people who don’t want to stay on Bolsa Família, but need an exit door. He needs to undertake, do something. And this person does not always have access to credit. So, we are going to create a line so that people can undertake and emancipate themselves from the income transfer program”, she signaled.

According to Haddad, the objective of the provisional measure is to address the credit system from the perspective of the most diverse audiences. “We have to think about the credit system from A to Z: from the person who is in a vulnerable situation and needs microcredit to emancipate themselves, to a businessman who had difficulties during the pandemic and who is unable to renegotiate their debts with Pronampe, even the bank that has a portfolio of real estate securities that it wants to sell to make room for new financing and is unable to due to bureaucratic rules that prevent it”, he explained.