BB to expand role in federal housing program

- Tuesday, May 31, 2011

BB to expand role in federal housing program

Federally controlled Banco do Brasil (BB) will start to expand its role in state housing program Minha Casa, Minha Vida (My House, My Life) in 2012, Brazilian planning minister Miriam Belchior was quoted as saying by government news agency Agência Brasil and Agência Estado.

BB joined the program in 2009 by providing financing for the construction of homes aimed at Brazil's vast low-income population. Then in July last year, the bank began to issue housing loans to individuals earning between three and 10 minimum wages, and next year it will begin to lend to those earning less than three minimum wages. The monthly minimum wage is currently 545 reais (US$344).

Federal savings bank Caixa Econômica Federal (CEF) is the main housing lender in the program.

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Belchior said BB would work throughout this year to create the proper structure to support its expanded role in Minha Casa, Minha Vida. She added that it was President Dilma Rousseff's decision for BB to expand its financing role in the program.

CEF has made 4.6bn reais in disbursements so far to finance 64,000 housing units under Minha Casa, Minha Vida and expects to attain its 1mn unit goal in April on the program's two-year anniversary, as BNamericas reported previously.