Brazil to offer emergency infrastructure loans(5)

Brazilian senator Ideli Salvatti has told local media that the government is planning to provide up to $2.5 billion in emergency loans to companies undertaking state-sponsored infrastructure projects.

The Brazilian government is planning a program to provide emergency finance to companies undertaking state-sponsored infrastructure projects which are unable to obtain debt financing.

Ideli Salvatti

According to an interview by Brazilian newspaper Estado de Sao Paulo with senator Ideli Salvatti, the finance ministry of the Brazilian government is drawing up plans to offer as much as $2.5 billion in loans to companies with infrastructure projects within its Program to Accelerate Growth (PAC).

These funds, she said, would be made available over the coming three years. Salvatti said the planned capital boost was designed to ensure the PAC projects proceed as planned despite the global credit turmoil.

The PAC program comprises more than $236 billion in projects and is designed to stimulate economic growth in the country to a yearly average of 5 percent. 

Gross domestic product growth is predicted to be 2.7 percent in 2010 according to the Economist Intelligence Unit.