Sign in Subscribe
Governors

Parana State of Brazil Launches Strategic Fund to Attract Investments and Promote Economic Growth

Strategic Insights

— 2 min read

The governor of the Brazilian state of Parana, Carlos Massa Ratinho Junior, has presented a proposal to create a state sovereign fund, the Parana Strategic Fund (FEPR), aiming to attract investments and promote long-term economic growth. The fund will be managed by the Finance Department and will focus on sectors such as logistics infrastructure, low-carbon agribusiness, and innovation.

Key Takeaways:

  • The Parana Strategic Fund (FEPR) will be a state sovereign fund focused on long-term financial planning, aiming to attract investments and promote economic growth.
  • The fund will have three main pillars: Socioeconomic Development, Fiscal Sustainability, and Disaster Response.
  • The fund will act as an anchor investor, mobilizing national and international capital, and offering credit lines on competitive terms.
  • The fund will focus on sectors such as logistics infrastructure, low-carbon agribusiness, innovation, the bioeconomy, and higher-value-added industries.
  • The fund will also serve as a liquidity buffer for the state, allowing it to maintain fiscal health, even in times of economic crisis or when fiscal policy constraints are in place.
  • The fund will be managed by the Finance Department, and will also have 10% of the State Treasury's financial investments, sale of financial assets, royalties, and other assets provided for by law.
  • The fund will have a reserve to deal with natural disasters, ensuring the state can respond quickly to emergencies, helping with reconstruction and supporting affected families.
  • The fund will also focus on reducing the urban infrastructure deficit in Parana's municipalities, strengthening municipal management, and improving the coverage and quality of basic urban services.
  • The Parana State Government is also structuring a Basic Sanitation Fund, which will offer subsidized financing with lower interest rates than market rates to companies, to advance construction projects.
  • The state has attracted over R$300 billion in new industrial plants over the last six years, and has the lowest IPVA for the first time, the lowest tax burden for companies, and the most exempt basic food basket.

Statistics:

  • Over R$300 billion in new industrial plants attracted to Parana in the last six years.
  • 83% basic sanitation coverage in Parana, with a goal of being the first state to universalize (90% of sewage collected and treated), and 100% of drinking water available.
  • The Vida Nova program aims to serve 6,000 families over five years.
  • The Parana Urbano III program is implemented by Paranacidade and Fomento Parana, and aims to sustainably reduce the urban infrastructure deficit in Parana's municipalities.

Sources:

  • [Governor Carlos Massa Ratinho Junior's speech, as presented to the president of the Inter-American Development Bank (IDB), Ilan Goldfajn]
  • [Article from the Parana State Government's official website, aen.parana.pr.gov.br]
  • [Meeting between Governor Ratinho Junior and IDB President Ilan Goldfajn]

Read more