New Basle norms favour SME lending - Brazil

BRAZIL - New Basle norms that will be applied in Brazil and other developing countries in 2006 will loosen reserve requirements for banks lending to small- and medium-sized enterprises (SMEs), Brazilian daily Panorama Brasil reported on Tuesday.

As a result the SME segment will have access to cheaper loans, central bank oversight director Tereza Grossi said on Monday at a conference in Sao Paulo.

The more lenient reserve levels for SME loans were approved because few banks cater to this segment

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