Brasília, June 17, 2004 (Agência Brasil) - The Inter-American Development Bank (IDB) will lend US$ 5 billion to Brazil's public and private sectors between 2004 and 2006. Participation in Public-Private Partnership (PPP) projects, to the tune of US$ 637 million (R$ 2 billion), is just part of the bank's contribution to the country's development, said IDB president, Enrique Iglesias.

In the area of productivity and infrastructure, the IDB will finance a US$ 1 billion National Economic and Social Development Bank (BNDES) program on behalf of micro, small, and medium-sized firms.

In the social area, the IDB will allot US$ 1 billion for the Family Grant program, administered by the Ministry of Social Development and Hunger Alleviation.

The IDB will also use US$ 800 million to support urban infrastructure improvement projects. Other funds will go to social assistance projects.

The president of the IDB is in Brazil this week for discussions with Ministers in the economic area about the institution's program for the country between 2004 and 2006.

According to Iglesias, "all this backing was motivated by the positive indicators of the Brazilian economy and by the growth in private investments, which open new paths for participation by the IDB in Brazil."

Reporter: Lourença Melo
Translator: David Silberstein