President Luiz Inácio Lula da Silva signed a provisional decree creating a BRL 15 billion (USD 2.8 billion) credit line for businesses affected by the floods that ravaged Rio Grande do Sul — the latest in a long series of government initiatives aimed at the reconstruction of Brazil’s southernmost state.
“We changed the paradigm on how to treat climate problems,” Lula said during a ceremony at the presidential palace. “From now on, not only Rio Grande do Sul, but any region with a climate problem will have a special action.” He added that the federal government is devising a plan to “avoid” similar problems, without offering details.
The funds for the new credit line are drawn from the Social Fund, created in 2010 with revenue from oil explored in the so-called pre-salt layer, deepwater reserves off Brazil’s south and southeastern coast (and not the Climate Fund as announced earlier by Treasury Secretary Rogério Ceron).
The provisional decree, which took effect immediately but will expire if not approved by Congress in up to 120 days, allows for three separate credit programs.
The first is for the purchase of machinery, equipment, and services. A second credit line is for construction work. A third will supply emergency working capital for small and...
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