Brazil Credit Expansion Continues As Economy Recovers
SAO PAULO -(Dow Jones)- Brazil's credit expansion continued in October,
responding to a healthier local economy, according to data published Wednesday
by the Central Bank.
Credit operations rose 1.4% from September and 15.3% from October 2008, when
major multinational banks were failing due to the popping housing and
derivatives bubbles in the U.S. and Europe.
All told, Brazilian banks lent 1.36 trillion reals ($790.6 billion) in
October.
The Central Bank reported that housing was the leading lending segment, up
3.1% from September and accounting for BRL85.2 billion. Over the last 12 months,
mortgage lending rose 42.5%. Public-sector debt, led by Brazil's individual
states, rose 3.2% in October to BRL22.4 billion.
Brazil's total credit as a percentage of GDP stood at 45.9% in October, up
from 45.7% in September.
Average banking spreads remained relatively stable at 26%.
Brazil's economy is expected to grow between 4.5% and 5% in 2010, according to
official estimates.
-By Kenneth Rapoza, Dow Jones Newswires, 5511-2847-4541, kenneth.rapoza@
dowjones.com
(END) Dow Jones Newswires
11-25-090833ET
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