Brazil

   Brazil Increasing Productivity, Sustainability and Inclusion Development Policy Loan

                                           Chair Summary*

                                           March 18, 2025

Executive Directors approved a development policy loan (DPL) for the Federative Republic of
Brazil for Increasing Productivity, Sustainability and Inclusion, in the amount of US$1 billion, on
the terms and conditions set out in the President’s Memorandum. Messrs. Suter and Imamura
wished to be recorded as abstaining.

Directors commended Brazil’s ambitious agenda to improve taxation and fiscal sustainability,
promote climate action, and strengthen social inclusion. They welcomed the landmark tax reform
and strong efforts to transition to a low-carbon economy. They also noted that lessons could be
incorporated in other operations and encouraged knowledge transfer to other middle-income
countries.

Directors asked about the country’s fiscal sustainability urging further fiscal adjustments,
emphasizing the need for coordinated fiscal and monetary policies to control inflation. They
commended Brazil’s commitment to halt illegal deforestation through various policies and efforts
to implement the ecological transformation plan and mobilize finance, including by offering
derisking tools to the private sector. They also called for greater efforts in creating job
opportunities and supporting vulnerable groups.

Directors welcomed the operation’s coordination with other development partners and emphasized
the importance of enhancing capacity building for the country during implementation.




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*This Summary is not an approved record.