Credit and low costs in Brazil
In the most southern state of Brazil, Rio
Grande do Sul (RS), a system with the name CompRaS has been set up.
CompRaS is the Portuguese word for buying, so the name indicates Buy
from RS, buy locally.
Objective
The objective of this project is to provide the
state of Rio Grande do Sul with a method to improve the competitiveness
and financial sustainability of micro- small- and medium sized
entrepreneurs and increase the purchasing power and living conditions
of the consumers. Other beneficiaries are social and welfare projects
of the region (Public Safety Police Force Union, local governmental
programmes, programme Fome Zero1 and the entire population of the state
who will benefit from a stronger and healthier local economy. The goal
is to generate more (internal) trade and access to low-cost credit by
providing companies with an internal transaction system ,
facilitated by an internal unit of transaction accepted by all members
and an internet-based internal transaction software system that allow members to perform mutual payments.
Results
The C3-CompRaS has been formalised in the beginning of 2005
and produces a lot of documentation such as manuals and a Business Plan
usable in other C3s
(Circuits of Consumers and
Companies). In June 2005 the first 50 companies
subscribed to the C3-CompRaS. In January 2006 the first transaction in units took place. As of May 2008, the network counts 738 members. The turnover expressed in Euros is approximately 242 400 Euros.
Partners
The CompRaS Association is the core
organisation in this project. An important partnership has been
achieved with Banco do Brasil, both at central and local level. At
central level the idea is an institutional collaboration between STRO
and Banco do Brasil. Banco do Brasil has also conceded to provide human
resources in the form of experts, on a voluntary basis, to
support projects. At the local level, an agreement was reached with the
local branch of Porto Alegre to perform the bank-activities in
the C3 network, such as the management of the credit portfolio and the
evaluation and reinforcement of loans.
Other partners are SEBRAE2 (RS), a huge semi governmental business training institute and IES3 , a credit advisory.
Together With Federasul, the federation of 110,000 companies in Rio
Grande do Sul, a programme to involve businesses is being executed.
An agreement has been made with the Guarantee Fund of Rio Grande to
cover the risks of internal loans in the formal currency against a cost
of a 1 and ½ percent.
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