Senate authorizes BNDES to make international loans of up to US$1.7 billion

The Senate approved this Tuesday afternoon (14) the Lula government’s proposal that authorizes the National Bank for Economic and Social Development (BNDES) to take out two loans that could reach US$ 1.7 billion from the New Development Bank (NDB ), the Brics bank, with a guarantee from the Union. The votes were symbolic and the texts are headed for promulgation.

One of the planned loans is worth US$1.2 billion (PRS 107/2023). According to the Executive, the amount should be used to partially finance the “2nd BNDES-NDB Program for Sustainable Infrastructure and Support for Subnational Entities”. The program finances loans for public and private subprojects, with a focus on sustainable infrastructure, and the provision of technical assistance for planning in these sectors.

On Wednesday (8), the proposal was approved by the Economic Affairs Committee (CAE). The text was reported to the commission by senator Fernando Farias (MDB-AL) and was processed urgently, informed the Senate Agency. The Presidency of the Republic informed that the Ministry of Finance, the Treasury Secretariat and the Attorney General’s Office of the National Treasury evaluated the request and consider that the bank meets the requirements to carry out the operation. This loan will have a total term of twenty-four years, with a grace period of four years. The amount will be amortized in 40 equal, semi-annual installments.

Loan of up to US$500 million for the “BNDES Climate Program”

The senators also authorized the BNDES to take out another loan from the Brics bank worth up to US$500 million (PRS 100/2023). The resources will be allocated to the “BNDES Climate Program”, which finances projects to reduce greenhouse gas emissions and actions to adapt to the effects of climate change. The initiative funds actions in the areas of renewable energy, solid waste, urban mobility, among others.

CAE approved this proposal on November 7th. The text was reported to the committee by senator Fernando Dueire (MDB-PE) and was also processed urgently. “Brazil presents several opportunities to accelerate the transition to a green and low-carbon economy. The country is designing its economic policy for the green transition, and the BNDES is central to expanding the benefits and guaranteeing speed and scale to this process”, defended the rapporteur.

Senator Teresa Leitão (PT-PE) stated that the resources will allow the country to achieve the goals set during the 21st Conference of the Parties (COP21) on Climate Change, held in Paris in 2015. “With this loan, the Brazil is in fact returning, with full conditions, to its commitment to the Paris Agreement. With this vote, we will be able to honor what the legislation has bequeathed to us”, said the parliamentarian on the 7th.

For Senator Tereza Cristina (PP-MS), resources must also be allocated to states and municipalities. “May they reach the end, and not just be in the middle or at the beginning. That these resources can really help states and municipalities with public policies for actions related to climate change”, stated Tereza Cristina after approval by the CAE.