Brasília, 6/22/2004 (Agência Brasil) - Yesterday Brazil and the World Bank signed a US$500 million (427 euros) loan agreement. The money is the first Programmatic Adjustment Loan for Equitable and Sustainable Growth. According to the World Bank, the loan is to be used in a series of microeconomic measures and institutional reforms to boost broad and sustainable growth, create jobs and reduce poverty through investments and increased productivity. There are four specific target areas: logistics (reducing customs and transportation costs), business climate (improving infrastructure investment rules), financial system (overhauling the banking system) and innovation (improving government investments in environmental protection).

Brazil is one of the World Bank's biggest clients, having received US$33 billion in loans since 1949. This year the bank is expected to loan an additional US$2 billion to Brazil.

(Translator: Allen Bennett)