This post was originally published on this site.
WASHINGTON, USA — The board of executive directors of the Inter‑American Development Bank (IDB) has approved an $80 million investment loan to Banco Regional de Desenvolvimento do Extremo Sul (BRDE) to support the financing of critical infrastructure and the recovery of micro, small, and medium‑sized enterprises (MSMEs) in Brazil’s Rio Grande do Sul State.
The project, Prosul Reergue Sul, is expected to promote investments by easing credit constraints. It will enable construction and strengthen the resilience to withstand future natural disasters and support the recovery of MSMEs’ production of goods and services in areas affected by flooding in 2024. Up to 7 percent of MSME financing is expected to be directed to women-led businesses.
Direct beneficiaries of the program will include developers of small-scale critical infrastructure projects in the transportation, energy, and water sectors, as well as MSMEs with annual revenues of up to R$300 million that have been directly or indirectly affected by extreme weather events in the state.
The broader population of Rio Grande do Sul is also expected to benefit indirectly, as new investments enhance resilience, boost productivity, and support employment generation.
The IDB loan has a maturity of 25 years, including a grace period of 5.5 years, and carries an interest rate based on the Secured Overnight Financing Rate (SOFR). Following approval by the IDB’s board of executive directors, the operation is subject to the procedures established under national legislation prior to signature and implementation.
This approval is part of a broader package of actions launched by the IDB to the state of Rio Grande do Sul following the 2024 floods. In the immediate aftermath, the IDB mobilised emergency resources and donations, as well as technical experts to assess the losses and damage caused by the disaster. Through this initiative, the IDB is supporting resilience and the state’s medium‑ and long‑term recovery.
The post IDB approves USD 80 Million loan to support infrastructure rebuilding and MSME recovery in Brazil’s Rio Grande do Sul appeared first on Caribbean News Global.
