Brazil to spur housing, infrastructure - minister

Sun Dec 14, 2008 9:49am EST
BRASILIA, Dec 14 (Reuters) - Brazil will boost spending on infrastructure and expand housing credit early next year, Finance Minister Guido Mantega said on Sunday in comments published by a leading newspaper.
The Folha de S. Paulo said the Brazilian government plans to increase the number of homes financed by state-controlled bank Caixa Economica Federal and the private sector to 900,000 in 2009 from an estimated 600,000 this year.
Mantega said Brazil's state development bank, the BNDES, will have 110 billion reais ($46.5 bln) to lend next year.
"We will stimulate in particular the economic sectors that demand less imports, such as housing, civil construction, and infrastructure," Mantega told the newspaper. "This won't hit the current account."
The comments come only days after the government announced tax breaks worth 8.4 billion reais designed to help boost demand and stem a slowing economy.
Mantega said on Thursday a commission of authorities and business leaders would study further measures.
Folha de S. Paulo also reported on Saturday the central bank would announce new measures to help provide more liquidity to small and medium-sized banks in the next few days.
($1=2.366 reais) (Reporting by Ana Nicolaci da Costa, Editing by Anthony Boadle)