Brazil injects US12 billion into housing support
August 09, 2012
Brazil’s Fundo de Garantia do Tempo de Serviço - FGTS (Severance Pay Fund) added $10.7 billion for financing home ownership programs and $2 billion subsidy for low-income families to purchase a home, during a meeting of the FGTS Board of Trustees in July. The information, provided by the Ministry of Labor and Employment, was reported by Fenaci
, a trade union representing approximately 150,000 real estate professionals.
The FGTS board also approved the most recent annual report of the Fund. According to the report, the Fund has invested $42 billion in housing. The document also highlights "the role of FGTS in reducing the housing deficit, especially for low-income population," with emphasis on the program, Minha Casa Minha Vida (My House My Life), the Brazilian government's social housing initiative for low-middle income families.
The housing area has received 87% of the Fund’s monies, which has benefited more than 490,000 families and created or retain nearly two million jobs.
FGTS was created in 1966 with the objective to provide severance pay in cases of unjustified dismissal, create a savings fund for workers, and use the fund to finance housing and water and sanitation programs. Brazil will celebrate Real Estate Week 2012
, September 12-19 in São Paulo.