Brazil Senate authorizes €300 million French loan and $500 million NDB credit for regional development

The Senate's Committee on Economic Affairs (CAE) approved a proposal from the Brazilian Presidency to contract an external credit operation of up to €300 million with the French Development Agency (AFD). The loan will finance the Sustainable Regional Development Transition Project, targeting investments in the North, Northeast and Central‑West regions. Senator Renan Filho highlighted that the funds will expand the capacity of the Amazon, Northeast and Central‑West Development Funds.

The Senate plenary also authorized a separate credit line of up to US$500 million with the New Development Bank (NDB). Both operations will be managed by the Ministry of Integration and Regional Development and will support infrastructure, clean transport, renewable energy, water management, smart cities, sustainable agriculture, bio‑economy, tourism, health and education projects. The €300 million loan is set for a five‑year disbursement schedule, a five‑year grace period and a 20‑year amortization, with interest based on the six‑month Euribor plus 2.05%. The NDB credit follows similar terms.

The proposals received favorable opinions from the Treasury Secretariat and the Attorney General’s Office, and the external financing commissions (Cofiex) cleared the technical aspects. The measures now await promulgation.