OPERATIONS WITH PARTICIPANTS

The operations with participants totalize R$ 2.6 billion and include portfolios of Property Financing and Simple Loan. These assets are equal to 2.6 % of the total Plan 1 investments. The legislation establishes the limit of 15 % of the Plan resources for these operations.

Simple loan

The loan portfolio of Plan 1 closed the year with 64,746 contracts, equivalent to R$ 1.1 billion. The profitability of 10.9 % of the portfolio remained close to the actuarial index of 9 %.

Loaning became easier

Now associates have the possibility to do the loan directly through PREVI website. The measure provided more comfort and speed. Now it is no longer necessary to leave home to do a loan, which is available at any time and through some clicks. For that, PREVI sent to the residence of all associates the Joining Agreement necessary to contract the operation. The Agreement is also available on the Internet. It is only necessary to fill it out correctly, to legalize one's signature at a notary's office or to endorse the signature at Banco do Brasil with identifying stamp of the endorsing agent (name and enrollment and forward it to PREVI to contract and / or renew the Loan through the Self service website. After that, it is no longer necessary to sign documents for new operations.

Real Estate Financing

1.5% of Plan 1 investment Assets is invested in financing to associates, which corresponds to R$ 1.5 billion. Portfolio profitability was 13.4% (9.8% in 2005).

Carim is reopened

Carim has already more than 30 thousand financing contracts, divided in four sub-portfolios. However, the expectation was big for the concession of new financing, since many associates still haven't accomplished the own house dream. Equity growth of the Institution allowed the reopening of Carim in order to make the own house dream of over 55 thousand associates come true.

Old financing can use FGTS

PREVI renewed covenant with Caixa Econômica Federal (Federal Savings Bank) for use of Severance Fund (FGTS) to pay the real estate financing granted in previous years by Carim.

Credit Recovery improves profitability

PREVI is adopting several measures for recovery of Carim default credits, such as direct negotiation for liquidation of contracts and regularization of delayed patments, and the filing of debt collection lawsuits. These measures favored net input of more than R$ 10 million in the year and the increase of Carim profitability.

The implemented measures favored the adjustment of 629 contracts. Of this total, 55 were liquidated and 574 had installments regularized.