IADB opens $1.2 bi credit line for farming in Brazil
The Inter-American Development Bank (IADB) signed a cooperation agreement with the Brazilian government to allocate $1.2 billion to finance sustainable development projects for agricultural production chains.
The credit line can be used by federal and state government entities. Financial institutions that act as intermediaries with the private sector and comply with the rules of the Commission on External Financing (COFIEX) will also have access to resources.
The resources will be available for ten years for rural development projects that fit in the 2020–2031 strategic plan of the country’s Ministry of Agriculture, Livestock and Supply.
“The areas of defense and agricultural innovation—including research, technical assistance and rural extension—land and environmental regularization, as well as environmental sustainability and resilience to climate change, will be covered,” the government said on Thursday (22), through a joint note from the Ministry of Agriculture and the Ministry of Economy.
According to the joint note, the first program to be reached will be the Northeast Agricultural Development Support Program—dubbed AgroNordeste—which is expected to receive $230 million.
Through AgroNordeste, projects involving the economic strengthening of Northeastern agricultural chains will be benefited, such as the expansion of the fruit-fly–free area in Rio Grande do Norte and Ceará, and the consolidation of the Fruit-Fly Phytosanitary Protection Area, in the São Francisco valley.
