The Brazilian government announced this Monday that it would suspend payments of the state of Rio Grande do Sul’s debt to the Treasury for three years to help rebuild the region devastated by floods.
The public debt stands at 104 billion reais (18.9 billion euros) and with the moratorium, about 10% of this amount will be freed up for reconstruction, Finance Minister Fernando Haddad said along with Brazilian President Lula da Silva and parliamentary representatives. who must approve this measure.
The minister added that during this period, interest on the debt will also not be recorded, all with the aim of “restoring the economic potential of Rio Grande do Sul in the shortest possible time.”
Rio Grande do Sul Governor Eduardo Leite, who attended the announcement via videoconference, thanked for the support and noted the “efforts of the entire federal government” in the face of the emergency.
The storms began fifteen days ago and have not stopped, and in southern Brazil the death toll has reached 148, 127 missing and 2.1 million people affected in 447 of the 497 municipalities of Rio Grande do Sul, home to almost 81 thousand people. in shelters and half a million homeless.
“Tomorrow we will announce actions for individuals. I will return to the state on Wednesday to ensure full support from the federal government. We will only calm down when the state gets back on its feet,” Lula da Silva assured in a message on his social networks.
The economic impact of climate catastrophe is still unmeasurable, but a report from the Federation of Industries of Rio Grande do Sul already paints a partial picture.
According to the organization, 86.4% of the state’s industrial enterprises are located in the affected cities, which were practically paralyzed for two weeks, as was almost the entire regional agricultural sector.
Some 600,000 small and medium-sized companies have also been affected, and even e-commerce has ground to a halt due to delivery difficulties in regions where bridges and roads have collapsed and airports are unstable or closed completely, as in the case of the airport from Porto Alegre. .
Last week, the federal government already announced a plan to help Rio Grande do Sul worth about 50 billion reais (9.09 billion euros), including direct aid and subsidized loans for small businesses.
Author: Lusa
Source: CM Jornal
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