Brazil of consortia

Elaine Patricia Cruz
Reporter from Agência Brasil

São Paulo – The Consortium System grew 10% from January to July of this year, considering the total number of participants, reported the Brazilian Association of Consortium Administrators (Abac). In announcing the sector's results, Abac highlighted that the system included 5,5 million people during this period, the highest number in the last ten years.

Consortiums sold 1,46 million new quotas, representing a 1,4% increase during the period. According to Abac, this demonstrates consumer confidence in consortiums. "These numbers indicate that Brazilians are, month after month, year after year, seeking to save with a defined objective, with longer terms, lower costs, and the possibility of being selected during the group's duration. In other words, practicing the indispensable financial discipline appropriate to their personal or family budget," said the executive president of Abac, Paulo Roberto Rossi.

The highlights of the sector were financing for light vehicles, which totaled 2,15 million participants in July, heavy vehicles, which totaled 207 participants in July, and real estate, which has been gradually recovering and totaled 690 participants in the same month.

Despite the growth, the association says there are "signs of insecurity" in the sector, generated by the uncertainties of the current economic climate, which has led people to postpone their decision to make medium- and long-term commitments and finance goods through consortia.