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Brazil's central bank chief signals imminent bridge solution for real estate financing - REUTERS
June 10 (Reuters) - Brazil's central bank governor Gabriel Galipolo said on Tuesday he expects to soon present a solution to finance the real estate sector, which is struggling due to a drop in deposits in savings accounts, historically its largest funding source.
Speaking at an event hosted by banking group Febraban in Sao Paulo, Galipolo said a "bridge process" would be introduced to transition from the previous financing model to a new one.The move comes amid discussions with key players in the sector, including state-run lender Caixa Economica Federal (CEF.UL), the market leader in housing credit in Brazil, Galipolo said.
During his remarks, Galipolo displayed a chart illustrating declines both in nominal and inflation-adjusted balances held in savings accounts, attributing the trend to the wide offer of more competitive yields through other investment options.
"The more people have access to alternatives, and the more financial education they receive, the more natural it is to see, over time, this reduction in savings accounts balances," he said.
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