IDA Credit: US$1.1 Billion
TERMS: Maturity= 30 years; Grace= N/A; Monthly Repayment Plan
Project Description: The Fiscal Sustainability for Growth Development Policy Project in Brazil aims to help the State of Rio Grande do Sul achieve a more stable and sustainable fiscal position, improve its debt profile, reduce social security imbalances, and enhance the efficiency of the state public sector. The proceeds of the loan will used to restructure part of the state's debts and smooth its debt servicing profile. It will also provide financial support at a critical juncture, as a new administration pursues policies to reverse a non-sustainable fiscal position. The operation is a priority for the Federal Government, since it will enhance compliance by the state with the federal Fiscal Responsibility Law.