· Priority investment to support climate action projects and small businesses

· EIB loan to support additional entrepreneurs in Minas Gerais

During the UN Climate Change Conference COP 26, the annual meeting of global leaders and climate action experts, the European Investment Bank (EIB) and Banco de Desenvolvimento de Minas Gerais (BDMG) announced additional finance for small and medium enterprises (SMEs) in Brazil.

The EUR 20m top-up agreement, complements previous agreements with BDMG, which allowed both institutions to widen eligibility criteria of the current EUR 100m BDMG CLIMATE ACTION Framework Loan II. This new loan will accelerate access to finance for SMEs and in particular micro-enterprises in Minas Gerais.

The EIB and BDMG are partnering to support a series of climate action projects in Brazil, including solar PV, small-scale hydropower and other renewable sources. In the COVID-19 context, the partnership has been adapted to help respond to specific needs of SMEs in this new challenging situation, by allowing faster loan disbursements to businesses.

EIB Vice-President, Ricardo Mourinho Félix responsible for Latin America said: “Fostering entrepreneurship is crucial for sustainable economic and inclusive growth, in particular during the challenging times we are facing. We are pleased to announce today the additional financial support to small businesses impacted by COVID-19 in Brazil. The EIB COVID-19 fast response has helped to accelerate the uptake and deployment of funds by BDMG to Brazilian businesses. This new agreement will bring additional finance to entrepreneurs. This agreement highlights EIB priorities in Latin America, supporting a sustainable and inclusive economic growth by boosting productive investment.”