Alckmin and Dilma secure BRL 5.7 billion in funding from BRICS Bank for Rio Grande do Sul

The Vice President and Minister of Development, Industry, Trade, and Services, Geraldo Alckmin, began an official mission to China and met on Tuesday, June 4, with Dilma Rousseff, president of the New Development Bank (NDB), also known as the BRICS Bank. Following their meeting, Alckmin and Rousseff signed a commitment letter to support Rio Grande do Sul. The agreement secures the allocation of USD 495 million (BRL 2.6 billion) from the NDB for the reconstruction of the Brazilian state. In addition to the NDB resources, borrowers such as the Brazilian National Bank for Economic and Social Development (BNDES), Banco do Brasil (BB), and the Regional Bank of the Extreme South (BRDE) will provide an additional USD 620 million, bringing the total investment to USD 1.115 billion (BRL 5.75 billion).

I would like to thank the NDB, under the leadership of President Dilma Rousseff, for all the support offered to the people of Rio Grande do Sul in the face of this unprecedented catastrophe. I am convinced that the reconstruction of the state will surpass the destruction."

Geraldo Alckmin, Vice President

“I would like to thank the NDB, under the leadership of President Dilma Rousseff, for all the support offered to the people of Rio Grande do Sul in the face of this unprecedented catastrophe,” said Alckmin. “I am convinced that the reconstruction of the state will surpass the destruction.” According to the commitment letter, the USD 495 million will be distributed as follows: USD 200 million for infrastructure, including investments in highways, bridges, urban roads, and other facilities. The remaining USD 295 million will be channeled through BRDE and allocated to the needs of Rio Grande do Sul. Meanwhile, the USD 620 million exclusively earmarked for the state will be granted by BNDES, BB, and BRDE.

The NDB president pointed out that the bank's mandate is focused on sustainable development and that, in the face of the environmental catastrophe in Rio Grande do Sul, the “NDB decided to have a strong presence, within its possibilities, in the state”. Rousseff emphasized the bank's flexibility in granting credit. She assured that the bank has monitoring mechanisms for resource allocation, but that it will not impose any rules on how they should be used. “At this time, it would be difficult to determine the exact criteria for reconstruction,” she evaluated.

GREEN TRANSITION AND SUPPORT FOR THE G20 - Alckmin and Rousseff also discussed green transition, economic growth, and the priorities of Brazil’s G20 Presidency. The Vice President stressed that Brazil must continue advancing in the green transition and strengthening its industry by diversifying the production base, a task to which the NDB can significantly contribute. He also affirmed the Brazilian government's wish to continue solidifying relations with the multilateral bank to guarantee support for the Brazilian agenda at the G20, particularly for the Global Alliance Against Hunger and Poverty.