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Brazil to Fund Firms Hit by Tariffs, Global Turmoil
25 Mar
Summary
- Brazil unveils a new 15 billion reais credit program.
- Funds aim to help companies impacted by geopolitical events.
- The initiative is a new phase of the Brasil Soberano program.
Brazil is preparing a significant financial aid package to support domestic companies facing economic challenges. President Luiz Inacio Lula da Silva is slated to sign a provisional measure that will provide 15 billion reais (approximately $2.9 billion) in credit. This funding is intended to help businesses cope with the impacts of geopolitical factors and international instability.
The program targets a range of companies, including manufacturing exporters affected by US tariffs and fertilizer producers crucial for reducing import reliance. This initiative represents a new phase of the Brasil Soberano program, initially launched in response to previous US tariffs.
Resources for the program will be sourced from the Treasury's financial surpluses, an export guarantee fund, and other budgetary allocations. The funds are designated for working capital, capital goods acquisition, and investments aimed at production adaptation and innovation.
