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IDB approves $51 million to support agrarian reform in Brazil

The Inter-American Development Bank today announced the approval of $51 million loan to Brazil in national currency to support a pilot program to accelerate self-sufficiency in settlements by families benefiting from agrarian reform.

The program will provide packages of assistance to enable 75 settlements serving 12,500 families to become self-sufficient in the states of Maranhão, Rio Grande do Norte, Minas Gerais, Mato Grosso, Mato Grosso do Sul, Paraná, and Rio Grand do Sul.

The resources will finance investments in physical, social, and productive infrastructure as well as technical assistance to support activities related to agricultural production, processing, marketing, and microenterprise development.

After reviewing the results of the first phase of the program, the Bank may help finance a second phase that will extend the graduation process to other states.

A study will be undertaken of the special needs of settlements in the Amazon region because of the complex social and environmental conditions in that area.

The total cost of the program is $85 million. The IDB loan is for a 25-year term, with a five-year grace period, at an annual interest rate of 4 percent. Local counterpart funds total $34 million.

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