Brazil calls for more assistance following $10 billion flood relief plan | Global News

The Brazilian government is taking further steps to address the aftermath of devastating floods in the state of Rio Grande do Sul, following the announcement of a 52 billion reais ($10 billion) aid package. The country is now in discussions with international financial institutions such as the International Monetary Fund and the World Bank to secure additional funding for reconstruction efforts.

Dario Durigan, the executive secretary of the Finance Ministry, revealed that multilateral lenders are willing to provide support for the southern state’s recovery. However, the full extent of the damage and financial requirements are still being assessed. The government is considering whether any funding from international lenders would require sovereign guarantees.

The catastrophic floods in Rio Grande do Sul claimed over 150 lives, displaced half a million people, and disrupted power and transportation systems in the region. The airport in the state capital of Porto Alegre is expected to remain closed for several months.

While the priority is to assist the affected population, the finance ministry is also mindful of maintaining fiscal stability. Durigan emphasized the need for a cautious approach to scaling the response to the disaster.

In addition to seeking international aid, Brazil is exploring the possibility of issuing sustainable debt to raise funds for reconstruction. However, challenges such as high US interest rates and a strong dollar are currently impacting the country’s borrowing capabilities.

Despite the obstacles, Brazil remains committed to supporting the state of Rio Grande do Sul and its residents in the aftermath of this unprecedented natural disaster.