Brazil Suspends Rio Grande Do Sul’S Debt For Three Years To Aid Reconstruction
Date
5/14/2024 3:24:26 AM
(MENAFN- The Rio Times) Brazilian President Luiz Inácio Lula da Silva announced on Monday a three-year suspension of debt payments for Rio Grande do Sul .
This southern state faces severe devastation due to recent floods. Immediate government intervention became necessary.
The announcement came during a virtual meeting with Lula, Finance Minister Fernando Haddad, and Governor Eduardo Leite .
Congress will review this suspension as a supplementary bill. It awaits approval and enactment.
Lula emphasized on social media that this measure complements the 50 billion reais (9.725 billion dollars) already allocated.
These funds support social programs and credit releases for Rio Grande do Sul.
He stated, "The federal government has just announced another important measure for Rio Grande do Sul.
The suspension of the state's debt payments for 36 months frees up 11 billion reais (2.139 billion dollars) for a reconstruction fund."
Additionally, he noted, "Another 12 billion reais (2.334 billion dollars) will be forgiven in interest payments."
The federal government will introduce more assistance programs this week. These include support for affected families.
Brazil Suspends Rio Grande do Sul's Debt for Three Years to Aid Reconstruction
Rio Grande do Sul has experienced unprecedented rains and river floods, causing significant destruction.
The floods have resulted in at least 147 deaths and affected over two million individuals. The disaster displaced 538,241 residents, with 79,540 currently in shelters.
Although the situation showed signs of improvement, heavy rains returned over the weekend.
This impacted northern and northeastern regions and the metropolitan area of Porto Alegre.
The suspension of debt payments will provide crucial financial relief. It allows the state to redirect funds towards rebuilding infrastructure and supporting displaced residents.
This intervention underscores the federal government's role in disaster response.
It highlights the ongoing struggle to mitigate climate-related catastrophes in vulnerable regions.
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