MercoPress. South Atlantic News Agency
US Export-Import bank loans Brazil 3 billion USD for oil and World Cup
Brazil’s massive pre-salt oil deposits are attracting investors world-wide The US government's export credit agency has authorized $3 billion in financing for Brazil, including 2 billion US dollars for the Brazilian government-managed oil company Petrobras.
“Brazil is one of the main priorities of the Ex-Im Bank,” said the organization's chairman and president, Fred Hochberg.
The remaining one billion USD will be for infrastructure projects, Hochberg told businessmen at a conference in Sao Paulo.
The loans will cover projects related to development of Brazil's offshore oil fields, as well as projects related to the 2014 World Cup and 2016 Olympics.
The Ex-Im Bank has previously provided funding to facilitate U.S. exports of goods and services to Brazil. In 2009, Petrobras signed a letter of intent with the Ex-Im Bank on a 10 billion USD financing package.
The U.S. is a key export market for Brazilian crude oil, and output is expected to soar as the pre-salt reserves are developed. Brazil's vast pre-salt oil and natural-gas reserves lie beneath two kilometers of the Atlantic Ocean and a farther five kilometers below sand, rock and a shifting layer of salt.
The pre-salt areas are estimated to hold between 50 billion and 100 billion barrels of oil, enough to turn Brazil into one of the world's top five producers of crude oil.
The announcement comes a day after the visit of President Obama who confirmed the US wants to become Brazil’s main trade partner and client of the pre-salt deposits.
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Read all commentsWow, this guy invest more outside than in his own country that's falling apart.
Mar 21st, 2011 - 10:04 pm 0If Brazil is doing so well, why does it need to borrow ?
Mar 21st, 2011 - 11:50 pm 0All countries take loans, and they do so because they can't just take money out of the pocket whenever they needed it: they have limited budgets, so certain kinds of investment need to be paid for with money other than government revenues. The links below are about loans to India and China, two countries whose economies are undoubtedly better off than the UK's or the US's.
Mar 22nd, 2011 - 12:00 am 0http://blogs.worldbank.org/endpovertyinsouthasia/world-bank-provides-four-loans-worth-over-43-billion-india
http://blogs.worldbank.org/endpovertyinsouthasia/world-bank-provides-four-loans-worth-over-43-billion-india
That said, I don't understand why Brazil would need to loan from a US public bank, since it owns over 195 billion dollars in US Treasury bonds.
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