The Inter-American Development Bank (IDB) entered into a partnership with Banco Cooperativo Sicredi to finance low-carbon agricultural practices. The credit line made available totals US$ 50 million, aimed at small Brazilian farmers with the aim of promoting financial inclusion in rural areas, increasing food security and preserving the environment.
According to the IDB, this is the IDB Group's first variable rate loan in Brazilian reais. The longer term, 4 years, will be provided through the intermediation of the CII (Inter-American Investment Corporation), and is generally not available in the local commercial bank market.
The IDB also announced that it will offer the client the option to participate in technical cooperation to train its staff in low-carbon agricultural practices and to encourage small rural producers to adopt environmentally friendly technologies through a financing mechanism results-based.
Source: Agrolink
