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BRASILIA, June 29 (Reuters) - Brazilian state lender Caixa Econômica Federal will resume in coming days a low-rate mortgage line that was shut down a month ago for lack of funds, Chief Executive Officer Gilberto Occhi said on Thursday, in an effort to bolster a fragile economic recovery.
Occhi expects to offer around 2 billion reais ($605 million) in so-called Pró-Cotista loans starting in July, supported by federal funds originally earmarked for the Ministry of Cities, he said at the sidelines of an event in Brasília.
The Pró-Cotista line of subsidized housing loans is among the cheapest housing financing available in Brazil, financed by resources drawn from workers severance fund FGTS. It offers rates of 8.6 percent per year, compared with a central bank benchmark rate of 10.25 percent.
$1 = 3.3072 reais Reporting by Ricardo Brito; Writing by Tatiana Bautzer; Editing by Andrew Hay