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Brazil’s state of Parana to receive IDB loan for social protection

Loan for $60 million to improve living conditions in areas of extreme poverty

The Inter-American Development Bank (IDB) announced the approval of a loan for $60 million for a program of social protection and family support in Brazil’s state of Paraná.

The "Família Paranaense” program seeks to improve the quality of life and reduce poverty for low-income families in 156 municipalities in Paraná by harmonizing policies and coordinating services provided by various government agencies. 

The operation will develop and test a new model for the country’s social programs. The model is based on providing intensive support to families to reduce vulnerability through improved school attendance of 6-to-14-year-olds, increases in family income, prenatal checkups for pregnant women, and health checkups for patients with chronic conditions. 

The program will also make investments in infrastructure by financing the legalization of housing for 1,774 low-income families in 11 priority communities identified by the Paraná state housing authority (COHAPAR). According to the State Low-income Housing Plan, 204,635 of these households are located in unregulated settlements, of which 101,716 are in favelas and 93,219 in illegal subdivisions. Many of these communities are located in vulnerable areas that are prone to flooding or landslides, in addition to being at risk from pollution, mainly of the water supply.

The IDB financing for $60 million is extended from the Bank’s ordinary capital for a term of 25 years, a grace period of 5.5 years, and an interest rate based on LIBOR.


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