Government seeks USD 4-billion loan to sponsor cash transfer initiatives

Government seeks USD 4-billion loans to sponsor cash transfer initiatives
Members of Brazil’s Economy Ministry. Photo: Julio Nascimento/PR

Brazil’s Treasury Secretary announced this Wednesday that the government is seeking around USD 4 billion in loans from international financial organizations to support the implementation of cash transfer programs in the country. Among the organizations contacted by Brazil are the World Bank, the Inter-American Development Bank, and the Development Bank of Latin America. The country has also looked for support from European agencies, requesting loans from the French Development Agency and the German Development Bank.

According to the government, these additional resources would be used mainly to support the BRL 600 national emergency salary program, established at the beginning of the Covid-19 pandemic. Though it is estimated that nearly 30 million Brazilians have already received the aid, according to the latest poll released by renowned pollster Datafolha, one-third of the workers who applied for the aid have yet to receive it.

The remaining resources would be used to pay for unemployment benefits and the national job-maintenance initiative, as well as the well-established Bolsa Família program — which, as of April, had enrolled at least 1.2 million new Brazilian families since the start of the pandemic.

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