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U.S. steps up cooperation with Brazil for post-pandemic recovery

The United States boosted its financial cooperation with Brazil on Monday to help the South American nation's economic recovery from the coronavirus pandemic with a loan to its largest private bank.

SAO PAULO, Oct 19 (Reuters) - The United States boosted its financial cooperation with Brazil on Monday to help the South American nation's economic recovery from the coronavirus pandemic with a loan to its largest private bank.

The U.S. International Development Finance Corporation (DFC) has extended a $400 million loan to Itau Unibanco Holding SA ITUB4.SA which should be used to finance small companies in Brazil, DFC said in a statement on Monday.

Itau should use the proceeds of the credit line mainly to finance projects aimed at women and Brazil's most undeveloped areas.

DFC also said it had signed a letter of intentions with Banco BTG Pactual SA BPAC11.SA for a $300 million loan, also focused on small companies in Brazil's poor regions and women.

In total, DFC said it was preparing $800 million to finance six projects in Brazil.

The announcement was made during a meeting with Brazilian business leaders to discuss increased trade and investment, attended by U.S. National Security Advisor Robert O'Brien, Export Import Bank President Kimberly Reed, and Sabrina Teichman, managing director of the Development Finance Cooperation.

(Reporting by Leonardo Benassatto, writing by Carolina Mandl; Editing by Bernadette Baum)

((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11 97116-3806;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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