Brazil Approves US$2.5 Billion State Credit Deal, US$1 Billion for São Paulo
Brazil's Treasury approved roughly R$13 billion in new state credit, including R$5.4 billion for São Paulo, resolving a loan fight that reached the Supreme Court. The post Brazil Approves US$2.5 Billion State Credit Deal, US$1 Billion for São Paulo appeared first on The Rio Times .
Brazil approved a US$2.5 billion state credit deal, with US$1 billion specifically earmarked for the state of São Paulo. This resolution followed a rare clash between Brasília and São Paulo, which had reached the Supreme Court. The Treasury signed off on five loan operations, with São Paulo receiving the largest amount of R$5.453 billion, or approximately US$1 billion.
The funding, provided by Banco do Brasil and guaranteed by the federal Treasury, aims primarily at transportation projects, including metro lines and highway widening. The loan, initially requested in late 2025, had cleared all technical hurdles but was delayed by a final signature. The dispute was resolved when Deputy Finance Minister Dario Durigan signed the authorization, just hours after São Paulo filed an urgent request at the Supreme Court.
This new batch of state credits totals R$13 billion, with São Paulo and Piauí together accounting for R$10.3 billion. The guarantee lowers the interest rate the state pays, making borrowing more affordable.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
