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U.S. steps up cooperation with Brazil for post-pandemic recovery

Published 10/19/2020, 08:38 AM
Updated 10/19/2020, 08:40 AM
© Reuters. FILE PHOTO: National Security Adviser Robert O'Brien speaks during a news briefing at the White House

SAO PAULO (Reuters) - The United States boosted its financial cooperation with Brazil on Monday to help the South American nation's economic recovery from the coronavirus pandemic with a loan to its largest private bank.

The U.S. International Development Finance Corporation (DFC) has extended a $400 million loan to Itau Unibanco Holding SA (SA:ITUB4) which should be used to finance small companies in Brazil, DFC said in a statement on Monday.

Itau should use the proceeds of the credit line mainly to finance projects aimed at women and Brazil's most undeveloped areas.

DFC also said it had signed a letter of intentions with Banco BTG Pactual SA (SA:BPAC11) for a $300 million loan, also focused on small companies in Brazil's poor regions and women.

In total, DFC said it was preparing $800 million to finance six projects in Brazil.

The announcement was made during a meeting with Brazilian business leaders to discuss increased trade and investment, attended by U.S. National Security Advisor Robert O'Brien, Export Import Bank President Kimberly Reed, and Sabrina Teichman, managing director of the Development Finance Cooperation.

© Reuters. FILE PHOTO: National Security Adviser Robert O'Brien speaks during a news briefing at the White House

Latest comments

Very timely. Brazil president popularity was based on the amount of money he was dishing out to the poor. That money was due to run out in December so an injection was due. Again another country that is having the vote propped up with cheap loans.  Trump wishes he could do the same to save his seat. I think this is as close to socialism you can get whilst denying it.
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