The Inter-American Development Bank (IDB) has approved a $1 billion (R$5.5 billion) loan to support Brazil’s Ecological Transformation Plan, a key policy reform agenda aimed at enhancing the business environment and stimulating private investment. The initiative seeks to improve financial conditions, strengthen institutional capacity, and promote sustainable economic growth.
Central to this effort is the launch of Eco Invest Brasil, a joint initiative between the IDB and the Brazilian government. Eco Invest is designed to address currency volatility—one of the main barriers to investment—by offering innovative financing tools and more favorable financial conditions. It aims to mobilize around $10.8 billion (R$60 billion) in private sector investment by 2027 through a blended-finance approach.
Eco Invest will include a project-preparation facility, a liquidity facility, and a foreign exchange derivatives program. These tools are expected to facilitate private investment and expand access to capital for green and sustainable projects across Brazil.
To support the implementation of the Ecological Transformation Plan, the program also introduces a robust governance framework. This includes coordination across the executive, legislative, and judiciary branches of government. The initiative will establish standards for issuing sovereign sustainable bonds and develop a comprehensive national bioeconomy strategy.
In addition to environmental and investment reforms, the program incorporates a fiscal component. It aims to strengthen Brazil’s business environment by leveraging recent tax reforms to improve overall economic competitiveness and policy efficiency.
The $1 billion policy-based loan is part of a wider multilateral strategy to bolster the sustainability and resilience of Brazil’s economy. The financing terms include a 20-year maturity, a 5.5-year grace period, and an interest rate linked to the Secured Overnight Financing Rate (SOFR).
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