The Board of Executive Directors of the Inter-American Development Bank has approved an $80 million investment loan to Banco Regional de Desenvolvimento do Extremo Sul to support infrastructure financing and the recovery of micro, small, and medium-sized enterprises in Brazil’s Rio Grande do Sul.
The initiative, known as Prosul Reergue Sul, is intended to ease access to credit and encourage investment. It aims to support construction projects, strengthen resilience against future natural disasters, and help businesses resume production in areas affected by flooding in 2024. According to the program details, up to 7 percent of financing for small and medium-sized enterprises is expected to go to women-led businesses.
The program will directly target developers of small-scale infrastructure projects in sectors such as transportation, energy, and water. It will also provide support to businesses with annual revenues of up to R$300 million that were affected, directly or indirectly, by extreme weather events in the state.
Authorities expect indirect benefits for the wider population of Rio Grande do Sul through improved infrastructure, increased economic activity, and job creation linked to the new investments.
The loan has a maturity of 25 years, including a grace period of five and a half years, and carries an interest rate tied to the Secured Overnight Financing Rate. Final approval of the operation remains subject to procedures required under national legislation before signing and implementation.
The financing forms part of a broader set of measures launched by the Inter-American Development Bank following the 2024 floods in Rio Grande do Sul. In the aftermath of the disaster, the institution provided emergency funding, donations, and technical assistance to assess damage and support recovery efforts.
