Source: Inter-American Development Bank
Brazilian state of Espírito Santo to support production and jobs against pandemic
A $30 million loan from IDB will benefit micro, small and medium-sized enterprises in the state’s 78 municipalities
The Brazilian state of Espírito Santo will support the financial sustainability of micro, small and medium-sized enterprises (MSMEs) against the COVID-19 crisis as the backbone of jobs and the production sector with a $30 million loan approved by the Inter-American Development Bank (IDB).
The program will provide liquidity to these three classes of company through loans for working capital granted by the Banco de Desenvolvimento do Espírito Santo S/A (BANDES), through a line of financing called a Giro Emergencial. The funds will help MSMEs in the state’s 78 municipalities.
The goal is for BANDES to preserve production and jobs created by MSMEs, particularly in the sectors hardest hit by the pandemic, such as manufacturing, retail trade and services.
The plan also aims to encourage gender inclusion by collecting and monitoring disaggregated data on the sex of the leader or owner of these firms according to best practices. This is expected to boost the share of working capital loans for female-led MSMEs in BANDES’s portfolio.
The $30 million IDB loan has an amortization period of 25 years, with a grace period of five and a half years and an interest rate based on LIBOR.
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.