Brazil secures World Bank loan. Lula promises to combat hunger
Brazil has secured World Bank loans worth $505m to finance its social programme. World Bank President James Wolfensohn said Brazil could look forward to an influx of foreign investment once the war with Iraq is over.
"You do not have the immediate problems that the Middle East does, or the fundamentalism or trans-Atlantic differences that exist today. After we get out of this crazy situation in the world, there could be advantages for Brazil," he said.
You do not have the immediate problems that the Middle East does, or the fundamentalism or trans-Atlantic differences that exist today
James Wolfensohn
He added he was "extremely impressed" by the present administration's commitment to curbing spending and economic reform.
Brazilian President Luiz Inacio Lula da Silva used the announcement to explain his social programmes to World Bank officials and Inter-American Development Bank President Enrique Iglesias.
'Zero hunger'
He said the centrepiece of his social reforms is his Zero Hunger scheme to feed the 46 million Brazilians who survive on less than a dollar a day.
Brazilians have worried that the war in Iraq would dampen economic recovery if high fuel prices led to inflation.
Brazil relies on foreign investment which has dropped as companies suspend investments until after the war.
It has been said that up to $10bn could be available in World Bank loans over the next three-and-a-half years.