São Paulo – The Brazilian Devopment Bank (BNDES) and KfW Development Bank signed a loan agreement in which KfW will transfer 265 million euros, the equivalent to R$ 1 billion (US$ 288 million), to BNDES. The money will be used to fund public transportation projects that are efficient and sustainable. The projects benefited with the money will have to be carried out by Brazilian companies in the country’s metro areas.
The agreement was signed this Monday (17th) and released this Tuesday (18th). This wasn’t the first agreement between the two banks. According to a statement released by BNDES, this was the 14th loan made by KfW to the Brazilian bank. The first one was done in 1950. KfW was created in 1948 to fund the German reconstruction after the Second World War (1939-1945) however it also operates in support of projects in other countries.
Still according to BNDES, the Brazilian bank, among its strategies, seeks to expand investments it does in partnerships with governmental and multilateral organizations. This year, the bank already obtained US$ 765 million abroad for industrial, renewable energy generation and urban mobility projects.
Next Wednesday (18th), president Dilma Rousseff will welcome German chancellor Angela Merkel in Brasília. They will signed partnership agreements between the two countries, as well as discuss expansion of diplomatic and trade relations.
*Translated by Sérgio Kakitani
