IDB Announces Support Package for Brazil’s Rio Grande do Sul in Response to Flood Disaster

BRASILIA - Inter-American Development Bank (IDB) President Ilan Goldfajn affirmed his solidarity with the people of the State of Rio Grande do Sul in southern Brazil amid the ongoing flood disaster and announced a series of support measures. The package includes emergency measures with humanitarian aid and lines of credit for rebuilding infrastructure in a resilient and sustainable manner.

"I want to express my solidarity with the people of Rio Grande do Sul during this time of tragedy - an unprecedented tragedy. I came to Brazil to offer the support of the IDB to the people of the state and to the municipal, state and federal governments," said Goldfajn.

The IDB's support package could amount to 5.5 billion reais (approximately $1.07 billion). It includes 1.5 billion reais (approximately $291 million) from existing contracts that could be redirected to alleviate the effects of the tragedy, and which could be disbursed in an accelerated manner, as well as 4 billion reais (approximately $776 million) available to the governments for new contracts. Additionally, the IDB is providing an emergency donation for humanitarian aid.

Part of the 1.5 billion reais in resources from existing contracts that could be redirected or more rapidly disbursed can be used for infrastructure, measures to protect jobs, and to support social needs.

The new resources offered by the IDB, which could reach 4 billion reais, are expected to be allocated to finance climate resilience and reconstruction, including in the areas of road infrastructure, sanitation, urban development, agriculture, and social projects, as well as to strengthen fiscal management to address climate disasters and natural-disaster-management plans.

In addition to lines of credit, the IDB will donate 3 million reais (approximately $582,000) in emergency humanitarian aid, distributed as 1 million reais (approximately $194,000) for immediate humanitarian support and 2 million reais (approximately $388,000) in technical assistance to Rio Grande do Sul for damage assessment and to define an action plan for reconstruction. Additionally, IDB staff have launched an internal giving campaign in which each dollar donated will be matched by the IDB, up to $500,000 reais (approximately $97,000).

President Goldfajn also highlighted other activities during his time in Brasília this week and the IDB's close collaboration with Brazil's Presidency of the G20, including on the Global Alliance against Hunger and Poverty and the process of reforming multilateral development banks within the G20 finance track.

"We are fully committed to launching the task force for the Global Alliance against Hunger and Poverty that will take place in July. Furthermore, in our work with the G20 finance track, we are promoting the reform of multilateral banks, as the leader of the multilateral banks group. We are working on measures to increase the impact and scale of multilateral banks," he said.

Watch President Goldfajn's press conference at the IDB's Country Office in Brazil here (in Portuguese).

About the IDB

The Inter-American Development Bank is devoted to improving lives. Established in 1959, the IDB is a leading source of long-term financing for economic, social and institutional development in Latin America and the Caribbean. The IDB also conducts cutting-edge research and provides policy advice, technical assistance and training to public- and private-sector clients throughout the region. Take our virtual tour.

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