Before Lula, Brazil was afraid to grow. And many feared that companies would prosper. And even more afraid that families would improve their standards of living. Only this could explain the limited amount of available credit under the FHC Government: only R$ 380 billion in 2002. It may seem like a lot, but almost nothing for a country of the size of Brazil. Lula quadrupled this amount to R $ 1.6 trillion in 2010. By the end of 2013 there was no less than $ 2.7 trillion circulating in the economy in the form of loans to firms and households. With Lula and Dilma, Brazil lost its fear of success.
Lula pointed out and faced the contradiction: Brazil was a capitalist country without capital - neither for investment, nor for consumption. In 2004-2005, the country experienced the onset of accelerated credit expansion, both for businesses and for individuals. And supply has not stopped growing. The strong reduction in interest rates promoted by the Lula government (24.9% in December 2002 to 10.66% in December 2010) provided more credit for legal entities. For individuals, the main innovation was the introduction and spread of payroll loans, in compliance with the demands of the unions.
