Brazil Gets $505M Loan for Social Programs

<a href=www.voanews.com>VOA News 30 Mar 2003, 02:10 UTC

The World Bank has agreed to loan Brazil $505 million to help finance social programs.

World Bank President James Wolfensohn and Brazil's Finance Minister Antonio Palocci signed the loan agreement Saturday in Brasilia.

President Luiz Inacio Lula da Silva met with Mr. Wolfensohn to explain his plans for social reforms, including a "Zero Hunger" program aimed at providing money for food to poor Brazilians. But Reuters news service quotes Mr. Palocci as saying the loan funds are not earmarked for a specific project.

Mr. Wolfensohn said he was very impressed by the Brazilian government's commitment to providing social services while addressing economic problems.

Brazil has been struggling to recover after economic crises both there and in neighboring Argentina. But the nation relies heavily on foreign investment, which has dropped because of tensions over the war in Iraq.