Brazil introduces new low-interest loans to spur tech innovation. Vice President Geraldo Alckmin announced a record-low 4% interest rate for these loans.
The program starts in September with a US$13 billion fund.
It will support a range of tech projects. These include AI, green fuels, and digital economy efforts. “The goal is to energize our industries,” said Alckmin.
Two banks will offer these low-interest loans.
The National Bank for Economic and Social Development (BNDS) and a state-owned financing agency are involved.
Companies have 16 years to pay back, with a possible four-year break.
Before this, loan rates for similar projects were much higher. Rates ranged from 9% to 15%.
This move by Brazil follows a trend of government-backed tech initiatives in Latin America. The region has seen an increase in tech startups and innovation hubs.
Yet, Brazil aims to become a leader in this space. The program is part of a broader push for ‘neo-industrialization’ initiated by President Lula da Silva.
Historically, Brazil has lagged in tech innovation. The country has been known more for its natural resources and manufacturing.
This new loan program signals a shift in focus. Brazil now aims to be competitive in the global tech market.
The 4% interest rate is a big drop from past rates.
This shows Brazil is serious about attracting investment. The fund size of US$13 billion also indicates a strong commitment.
It’s worth noting that tech-driven projects are not just for big companies. Small and medium-sized enterprises can also apply.
The long repayment period and low-interest rates make it accessible for them.
This isn’t the first time Brazil has tried to spur innovation. Earlier efforts, however, were not as ambitious.
Past programs had more restrictive criteria and higher interest rates.
Both the government and private sector have high hopes for this program. With easier access to capital, Brazil aims to accelerate its technological growth.
The ultimate goal is to create a robust, innovative economy that can compete globally.