Brazil: Billions to prevent construction shutdown and layoffs

16 April 2020 11:58

(Photo: Campos24horas)

The BWI affiliate, Construction and Ceramic Workers’ Union of Curitiba and Metropolitan Region (SINTRACON Curitiba) welcomed news that CAIXA, a public bank, intends to inject an additional BRL 43 billion (USD 8.2 billion) to the real estate sector. 

According to reports, the fund intends to avoid construction shutdowns and layoffs. This brings the bank’s total credit provided to the sector since the start of the COVID-19 crisis to BRL 154 billion (USD 29 billion). Currently, around BRL 35 billion (USD 6.6 billion) has already been released.

“This measure is certainly most welcome. We hope that this initiative will be realised soon and really contribute to the maintenance of employment in the construction and the supply chain, which are quite extensive. We'll keep a close watch on this to make sure no layoffs occur,” SINTRACON Curitiba leader Domingos Davide said. 

According to CAIXA President Pedro Guimaraes, the fund aims to preserve 1.2 million jobs. "If necessary, we will expand the credit lines. The focus is to help builders of all sizes and avoid layoffs," said the executive. 

It was reported that CAIXA owns 70 percent of the Brazilian real estate credit.