Huge Amounts Of Diamonds And Gold Show Size of Brazil's Economic Woes

Finance and Trade
22/09/2015 10:57

Business has never been more hectic at the government-run pawnshops as Brazil’s economy continues to contract this year with more financial problems forecast for 2016 as the country suffers its longest recession for 80 years. The pawnshops are operated exclusively by state-owned bank Caixa Economica Federal and take mainly rare stones and jewelry. The cash given by the pawnshops is a loan carrying an interest rate of 1.9 percent a month which is by far the lowest in Brazil where credit cards charge about 13 percent a month. With the number of jobless at a five-year high and a record number of businesses going bankrupt, cash is at a premium in a country where a decade-long commodities boom raised living standards substantially.