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Caixa has funding dry-up for certain housing segment

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Caixa has funding dry-up for certain housing segment

said it has runout of funds allotted for certain mortgage loans, Folha de S. Paulo reported.

The fundingdry-up affects housing priced between 225,000 Brazilian reais and 500,000 reaisand comes despite Caixa receiving 7 billion reais of financing for the Pró-CotistaFGTS credit line two months ago. The state-owned bank already exhausted the 2.92billion reais allocated for this segment as early as February, the report said.

The remainingmoney in the fund, meanwhile, will be used for other housing segments, includingthose belonging in the below-225,000 reais price range and those valued between500,000 reais and 750,000 reais. Caixa has already asked approval to spend the remainingfunds with open leeway.

The FGTS hadreleased 21.7 billion reais for the housing market amid a shrinkage in savings fundsand as banks look for alternative source of funding for mortgages.

As of May 9, US$1 was equivalent to 3.55 Brazilianreais.