Government wants to stimulate vehicle credit

The Ministry of finance is studying measures to increase the rate of approval of funding for the purchase of vehicles, as a way to mitigate the crisis who lives the Brazilian auto industry. The measures involve the improvement of rules for vehicle recovery data as collateral in case of default, making this process more efficient and cheap. Also under consideration is the creation of a fund that would serve as collateral for the credit operations of vehicles, which would alleviate the impact of non-performing operations at banks.
The National Association of Automotive vehicle manufacturers (Anfavea) and the National Federation of distribution of motor vehicles (Fenabrave) lead the discussions and have been looking for some banks. The studies began from the date that the Anfavea had with President Dilma Rousseff on April 17. The main purpose is to decrease the rejection of proposals of credit by banks.
The most immediate measure would involve improving the mechanisms of recovery of vehicles in cases of default. The logic is that, leaving the stronger operation assurance, banks feel more comfortable in granting credit.
The recovery process of a defaulting debtor vehicle can cost up to $ 15,000 and drag on for months-which discourages banks to try to recover the credit in some cases. Financial institutions also have to pay other debts connected to the vehicle recovered, such as PROPERTY TAXES. In addition, the rules of how it should be conducted the resumption and the costs involved in the process vary between different parts of Brazil. What is being proposed is a way to make the whole process cheaper, agile and standardized nationwide, according to the value found.
Since the discussions on the establishment of a fund to the credit of vehicles are still in early stages, say sources heard by the value. Considers to be constituted in accordance with the guarantee fund operations (FGO), which serves as a complementary insurance operations of micro, small and medium-sized enterprises contracted loans for working capital and investment. In the rule, the Fund covers up FGO 80% contracted value, limited to $ 650,000, in the case of investment, and r $ 250 thousand, in the case of capital operation. Are public banks, however, the major users of FGO.
This week, representatives of vehicle industry will be in Brasilia to discuss with Government alternatives to unlock credit to automobiles. The Ministry of finance, the Anfavea must be received by the Executive Secretary Paulo Rogério Caffarelli, in a meeting to treat the topic, according to the manufacturers ' Association, should happen until Wednesday. Luiz Moan, President of the entity, confirms that the sector has negotiated measures to release the vehicle financing and that the Government has been discussing it with the banks.
But he avoids commenting on the possible creation of a fund to cover defaults or mechanisms to facilitate the recovery of vehicles in the event of default. "I have already given more than 15 ideas [the Government], but I don't know exactly where they are," said the leader. (Collaborated Eduardo Laguna)