Skip to content
Brazilian Senate approves debt suspension for flooded Rio Grande do Sul for 3 years

Brazilian Senate approves debt suspension for flooded Rio Grande do Sul for 3 years

Brazilian Senate approves debt suspension for flooded Rio Grande do Sul for 3 years

He Senate of Brazil approved this Wednesday the suspension of payment of the debt of the State of Rio Grande do Sul with the Treasury for three years, after the floods that left at least 150 dead and more than 600,000 displaced in the south of the country.

The measure, proposed by the Government of Luiz Inácio Lula da Silva to mitigate the enormous economic impact of the climate tragedy in the region, will now go to presidential sanction, after having received the approval of the Chamber of Deputies last morning.

LOOK HERE: “I lost everything”: the dreams of Peruvians who were underwater in Brazil

The total volume of debt Rio Grande do Sulin the border Uruguay It is ArgentinaIt is currently around 100 billion reais (19.5 billion dollars/18 billion euros).

With the moratorium, around 10% of this amount will be allocated to the reconstruction of that territory, where heavy rains partially or completely flooded dozens of cities in the last two weeks, including the regional capital, Porto Alegre.

The force of the water destroyed thousands of homes, blocked roads, collapsed bridges, paralyzed the entire productive fabric and left a large part of the population in that part of the country without electricity.

During the payment suspension period, no interest will be charged on the debt, with the aim of “recover the economic capacity of Rio Grande do Sul in the shortest possible time“, as defended by the Executive.

The approved bill could be applied in the future to other Brazilian states that are also affected by extreme weather events, if approved by Parliament and the Government.

MORE INFORMATION: Lula admits that Brazil was “not prepared” for the disaster in the South, which is suffering new floods

According to the latest Civil Defense bulletin, there are 2.12 million victims in Rio Grande do Sul, which is still experiencing a chaotic situation after a strong storm hit 446 of its 497 municipalities.

In addition to the 150 deaths, one of them in the neighboring state of Santa CatarinaThe floods have so far left 108 people missing, 806 injured and more than 600,000 displaced.

Lula traveled this Thursday to Rio Grande do Sul for the third time since the disaster to announce a new battery of economic measures aimed at the victims of the disaster.

Source: Elcomercio

Share this article:
globalhappenings news.jpg
most popular