May 21, 2019 / 9:50 PM / 25 days ago

Brazil's Caixa to offer discounts on delinquent loans to raise up to 4 bln reais

SAO PAULO, May 21 (Reuters) - Brazilian state-owned lender Caixa Econômica Federal will offer indebted retail clients discounts on their delinquent loans, in an attempt to raise up to 4 billion reais ($990.52 million) for the bank’s coffers, CEO Pedro Guimaraes told journalists on Tuesday.

He said these loans had already been written off, so if successful this initiative would raise extra revenue. The move will allow Caixa to offer new products and services to clients after they pay off their loans.

The discounts will range between 40% and 90%.

At the helm of Caixa since January, Guimaraes has been trying to increase the bank’s profitability, closing the gap with private-sector banks. ($1 = 4.0383 reais) (Reporting by Marcela Ayres; Writing by Carolina Mandl Editing by Phil Berlowitz)

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