(Adds context)
BRASILIA, Feb 27 (Reuters) - The Brazilian government is
closely monitoring the credit market to ensure liquidity and
considering measures for specific sectors, Treasury Secretary
Rogerio Ceron said on Monday.
His comments come amid concerns of the new leftist
administration of President Luiz Inacio Lula da Silva regarding
the impact of high borrowing costs on economic growth, as the
country's benchmark interest rate remains at a six-year high of
13.75% to combat inflation.
"The government is carefully monitoring the credit market to
ensure liquidity and access," Ceron told a news conference.
"Possible needs for specific sectors are being discussed, such
as small and medium-sized companies, but this is still in the
initial stage of discussion," he added.
Outstanding loans in Brazil decreased by 0.3% in January,
marking the first decline in a year. However, the central bank
highlighted the seasonal aspect of the result and said it was
still too early to evaluate whether Brazilian retailer
Americanas SA bankruptcy protection is impacting the
credit market.
During the press conference, Ceron stated that a broad
consumer debt renegotiation program is in its final stage and
will be announced soon.
The government's idea is to use public funds that already
exist to guarantee the renegotiation without any fiscal impact,
although Ceron did not rule out the need for new contributions
from the Treasury this year or next to make the program viable.
The secretary also stated that the increase in the minimum
wage promised by Lula will cost about 5 billion reais, and the
rise in income tax exemption will cost another 3.2 billion
reais, but added other compensatory measures would accompany
them.
(Reporting by Marcela Ayres; Editing by Chris Reese and Sandra
Maler)
