Macroeconomy/Finance

Ipea proposes 0% interest in credit to SMEs for GDP growth

Micro and small businesses (MSEs) are vital to the economy. Together, they represent 96.6% of businesses and contribute to about 30% of the Brazilian gross domestic product (GDP). A report by Ipea argues that Brazil should offer subsidized credit to MSEs. The proposal is for a line to be created with interest equal to zero and a one-year grace period, with credit conditional on the maintenance of jobs for a period of up to six months after the end of social isolation.

Source: Exame

Categories: Macroeconomy/Finance