Financial Cooperation

Financial Cooperation involves the provision of financial support for development projects through loans or non-refundable grants from international organizations, multilateral and regional banks, or banks and development agencies from donor countries.

Over the past decades, due to socio-economic developments, Brazil has seen its profile changed, from being a country that mainly benefits from financial cooperation to becoming a country that also promotes cooperation. Although there is a natural downward trend in the influx of resources from international financial cooperation, also called Official Development Assistance (ODA), the financial cooperation received by Brazil also dynamizes and expands the range of projects in several strategic sectors, especially in the areas of environment, energy efficiency, renewable energy, among others.

The Ministry of Foreign Affairs of Brazil participates, through its  Secretariat for Foreign Trade and Economic Affairs (SCAEC), in  the External Financing Commission (COFIEX), a Federal Government agency with responsibility for evaluating and supervising financial cooperation received by Brazil. COFIEX is responsible for analyzing and recommending to the Federal Senate the approval of projects of Brazilian public entities (the Union, states and municipalities, including their agencies, public companies and foundations) financed with external credit that requires a guarantee from the Union.

At the multilateral and regional levels, the main sources of funding for development projects in Brazil are the Inter-American Development Bank (IDB), the World Bank Group, the Development Bank of Latin America (CAF), the River Plate Basin Development Fund (FONPLATA), the New Development Bank (NDB), United Nations Fund for Agricultural Development (IFAD), and the European Investment Bank (EIB), among others. At the bilateral level, highlights include the German Development Bank (KfW- Kreditanstalt für den Wiederaufbau), the French Development Agency (AFD), the Japanese Bank for International Cooperation (JBIC), and the British Prosperity Fund.

The Paris Club

Brazil also provides financial cooperation to least developed countries. The main type of financial cooperation has been the sovereign debt rescheduling process within the scope of the Paris Club, to which Brazil joined in November 2016.

Debt rescheduling is primarily aimed at recovering  credits that would otherwise not be received. In the Brazilian case, results have been positive, as many debtors have paid off the remainder of their debts in recent years. The Paris Club also promotes the exchange of information with a view to promote debt sustainability at the international level.

At present, within the scope of the Paris Club and the G20, Brazil has supported the Debt Service Suspension Initiative (DSSI), aimed at the temporary suspension of debt service payments owned by the poorest countries (known as IDA countries), so that they can create fiscal space to address the challenges posed by the Covid-19 pandemic.

Division at the the Ministry of Foreign Affairs responsible for financial cooperation affairs:

Financial and Tax Policy Division (DPFT):

Tel: 61-2030-8528

dpft@itamaraty.gov.br