French agency plans to lend Brazil 70% more
The French Development Agency (AFD) plans to lend €2.4 billion to Brazil over the next four years. If all the disbursements are confirmed, the financial arm of the French government will increase by almost 70% the total volume of funds contributed since it began operating here in 2007. With €3.5 billion already received, Brazil is AFD’s main international destination and is expected to continue to be so, according to its director for the Southern Cone, Dominique Hautbergue.Most of its operations are with public authorities—states, municipalities, and the federal government— as well as state-owned companies and state-run banks, among others. There is already a division of the agency for operations with the private sector, to which almost €1 billion has already been allocated.The change of government and diplomatic rapprochement with Brazil help with the strategy, which will focus heavily on projects to universalize water and basic sanitation. During the administration of former President Jair Bolsonaro, when bilateral relations were marked by hostility, the AFD preferred to work directly, financing states and municipalities in operations that often did not have a federal guarantee. The same is likely to happen now in Argentina, given the uncertainties of Javier Milei’s government."With the return of President Lula to power, the resumption of bilateral cooperation required a review to update AFD’s strategy and operational roadmap in Brazil," the agency said. The new guidelines, according to Mr. Hautbergue, will prioritize projects that have an environmental, social, and gender impact. "We can’t separate support for climate change from these issues. Now more than ever, intersectionality is important," he added.Despite disagreement with the Bolsonaro administration, the approval of the 2020 sanitation framework has helped drive AFD’s new strategy for Brazil. The sector...
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