Planning authorizes operations with international loans for the Union and states

The Ministry of Planning and Budget authorized the implementation of new programs financed by loans from international banks. The decision was published by the External Financing Commission (Cofiex) in the Official Gazette of the Union (DOU), but the operations still need to be approved by the Federal Senate.

One of the authorizations provides for up to 717.483 million euros, equivalent to R$3.9 billion at the current price, for the “Correios Modernization and Ecological Transformation Program”. The amount will be financed by the New Development Bank (NDB), also known as the Brics Bank.

The authorizations also include the inclusion of up to US$100 million from the International Bank for Reconstruction and Development (Bird) to the Banco da Amazônia (Basa) in the “Sustainable Energy Promotion Program in the Amazon”.

The ministry’s council also authorized the “Bioeconomy and Sustainable Development Program for the Legal Amazon of Banco do Brasil”, through which BB intends to raise up to US$ 175 million with the Inter-American Development Bank (IDB) and another US$ 75 million with the Green Climate Fund (GCF).

The Cofiex publication also includes the authorization of credits within the scope of state governments. The council authorized the government of Pernambuco to seek US$275 million from Bird for the State’s “Fiscal, Economic and Environmental Sustainability Program”.

The State of São Paulo will be able to prepare a project to raise US$ 200 million with Bird for the state government’s contribution to the PPP for the expansion of the Yellow Metro Line in the capital of São Paulo.

The government of Santa Catarina was authorized to raise up to US$ 120 million with Bird for the “Sustainable Development Program for Family Agriculture” in the State.

Still with the Bird, the council authorized US$200 million for maintenance and adaptation of highways in Mato Grosso do Sul, and the same amount for the government of Bahia to use in sustainable infrastructure.

All authorizations for international loan requests must be approved by the Federal Senate to be requested.