Brazil's President Rousseff Pledges Fiscal Discipline

BRASILIA--Brazil's President Dilma Rousseff reinforced her administration's commitment with fighting inflation and keeping public accounts in good shape, as she launched another income distribution program.


"There is no chance my government won't fight inflation," she said. She delivered her message to an audience which included business people, government officials and the press, at a time when jittery markets have punished Brazilian assets on fears that Brazil's fiscal profile is deteriorating.

"Inflation is under control ... the public accounts are under control," the president said.

She made her remarks during an event where a special credit program for low-income families was launched. The Minha Casa Melhor (My Home, Improved) program will distribute credit cards with a 5,000 Brazilian reais ($2,344) credit-limit, specifically to buy furniture and appliances for homes bought under the government's affordable-housing program, Minha Casa, Minha Vida (My Home, My Life).

The government will subsidize interest rates on the credit cards distributed through the BRL17 billion program. In a country where credit-card rates can easily reach 50% a year, the new ones will offer 5% rates, with 48 months to pay off the debt.

Write to Paulo Trevisani at paulo.trevisani@dowjones.com

June 12, 2013, 11:48 a.m. ET
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