To reduce Treasury transfers, government raises long-term interest rates

12/22/2014 - 08h00

At a meeting this Friday (19) with President Dilma Rousseff, Finance Minister Guido Mantega and his successor, Joaquim Levy, decided to raise key interest rates for long-term loans to companies in the country, TJLP and PSI (Investment Support Program).

TJLP, adopted in 90% of loans from the BNDES (National Bank for Social and Economic Development), will be 5.5% in the first quarter of 2015. Today, it is 5% per year.

It is the first increase since Oct. 2003, the beginning of the Lula government (2003-2010), when long-term interest was at 12% per year. It was reduced until it reached 5% in Jan. 2012.

In the case of PSI, the final borrower rate was between 4% and 8% per annum and will jump to a rate between 6.5% and 10% per year.

Translated by JILL LANGLOIS