Japan Provides Emergency Support to Brazil Amid COVID-19 Crisis

Strategic Insights -

The Japan International Cooperation Agency (JICA) has taken a significant step in supporting Brazil's efforts to combat the COVID-19 pandemic. On June 23, JICA signed a loan agreement with the Brazilian Development Bank (BNDES) to provide a Japanese Overseas Development Assistance (ODA) loan worth 30,000 million Yen. The loan, known as the "COVID-19 Crisis Response Emergency Support Loan," aims to maintain the provision of health and medical services in Brazil, while also supporting the employment and corporate activities of Micro, Small and Medium Enterprises (MSMEs).

Key Takeaways:

  • The loan agreement, worth 30,000 million Yen, is the largest amount ever provided by JICA to Brazil through ODA.
  • The loan will be used to support medical institutions, medical manufacturers, and MSMEs in Brazil, with a focus on maintaining employment and corporate activities.
  • The project will be implemented in two components: loans through BNDES to medical institutions and manufacturers, and loans through intermediary financial institutions to MSMEs.
  • The loan has an annual interest rate of 0.01% and a repayment period of 15 years, with a 4-year grace period.
  • There will be no procurement needed for the loan, as it is a two-step loan.
  • The loan is expected to contribute to the achievement of Sustainable Development Goals (SDGs) 3 (Good health and well-being) and 8 (Decent work and economic growth).
  • The project is scheduled for completion by April 2026.

Statistics:

  • 30,000 million Yen: The total amount of the loan provided by JICA to Brazil.
  • 0.01%: The annual interest rate of the loan.
  • 15 years: The repayment period of the loan.
  • 4 years: The grace period of the loan, during which no repayment is required.
  • 3 and 8: The Sustainable Development Goals (SDGs) that the loan is expected to contribute to.

Sources:

  • Japan International Cooperation Agency (JICA) press release, June 23 [1].