As Brazilian Central Bank Alexander reaffirmed his belief that the country is not experiencing a credit boom, statistics released by Brazil´s ABECIP organization have pointed that the level of real estate related borrowing conceded by the Brazilian System of Savings and Loans reached R$ 37 billion in the first half of 2011, a rise of 55 percent when compared to the same period of 2010. Between January and June, 236,000 Brazilian properties were financed and it is estimated that the total amount being lent in 2011 will reach over R$ 85 billion, compared to R$ 56.2 billion in 2010.
The amount of wholesale finance from the national savings has continued to be of concern – now with a total balance of R$ 309.9 billion – 15 percent higher than in 2010 (R$ 270.1 billion). Alternative forms of finance, such as Covered Bonds and Certificates of Real Estate Receivables, are increasingly being proposed as solutions to ease future pressures on the money markets in line with the rising demand.
Full article by Ruban Salvayanagam here.