Brazil settles debt with Mercosur infrastructure fund

Brazil may receive funds to invest in infrastructure and regional integration in Mercosur. The Ministries of Foreign Affairs and Planning and Budget informed this Wednesday (19) that they paid off Brazil’s debts with the Fund for Structural Convergence of Mercosur (Focem), which totaled R$ 500 million. According to the two ministries, the payment of debts will allow Brazil to access R$ 350 million to finance projects in Brazilian municipalities in border regions with Mercosur countries. The fund provides resources for projects in areas such as urban infrastructure, security, basic sanitation and health. Created in 2004, Focem finances programs that reduce the difference in infrastructure within Mercosur and develop the competitiveness of the bloc’s countries, benefiting less developed regions. Destined to the countries, the fund’s resources are delivered as a non-refundable donation to finance up to 85% of the eligible amount presented by the bloc’s members. Planning did not inform the amount of debts with international organizations paid since the beginning of the year. On the last 10th, when the government completed 100 days, the portfolio presented a balance according to which R$ 526 billion had been settled, equivalent to just over 10% of the debt of US$ 4.806 billion at the beginning of the year. Last year, the transitional cabinet reported that the Brazilian government owed around R$5 billion to international organizations. At the end of December, Itamaraty received BRL 4.6 billion, which were converted into balances payable for 2023.

Agência Brasil