Cristiane Ribeiro
Special Report

Belo Horizonte (MG) – For the first time the Interamerican Development Bank will make loans in local currencies. That removes the risk of dollar valuations which can make loans more expensive for borrowers. The first loans in local currency by the IDB will be part of a protocol of intentions signed with the Brazilian government for its Procity (Procidade) program and will finance urban infrastructure projects.

Initially the program has a budget of US$450 million for projects in cities with populations of up to 200,000 inhabitants. Money will be spent on integrated urban development, transportation, highway systems, sanitation, social development and environmental management.

Minister of Planning, Paulo Bernardo, says the locations selected to participate in the program will begin receiving funds in six months.

Translation: Allen Bennett