The release of R$ 1.6 billion for cities affected by floods in Rio Grande do Sul was announced on Tuesday night (12) by President Luiz Inácio Lula da Silva (PT). Of this resource, R$ 1 billion from the National Bank for Economic and Social Development (BNDES) will be allocated to companies (around a thousand) and R$ 600 million from the Length of Service Guarantee Fund (FGTS) will go to 354 thousand workers with signed documents who live in the regions affected by the extratropical cyclone that occurred last week.
“We made the decision to grant a BNDES loan of R$ 1 billion to help recover the economy of all cities and, at the same time, the release of R$ 600 million from the Guarantee Fund (for Time of Service) to serve 354 thousand workers who have a Guarantee Fund”, said the president in a video posted on social media after the meeting, held at Palácio da Alvorada, with ministers who are part of a working group set up to deal with the situation in the state of South of the country.
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“What I can guarantee to the people of Rio Grande do Sul, to the people of the region that was harmed by the rain, is that the federal government will not fail to meet the needs of the people of the region, be they small and medium-sized entrepreneurs, residents, people who they lost their homes”, added Lula.
On Sunday (11), the then acting president Geraldo Alkmin (PSB), on a visit to the municipality of Lajeado, one of the hardest hit, had already announced the availability of R$741 million in aid to the government of Rio Grande do Sul. The Vale do Taquari region suffered enormous damage due to the climate event. In addition to destroyed homes, around a thousand businesses closed due to the devastation.
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Municipalities await more resources
The president of the Brazilian Association of Municipalities (ABM), Ari Vaanazzi (PT), mayor of São Leopoldo, also informed that on Tuesday (12), in a meeting at Palácio do Planalto, that the Minister of Institutional Relations, Alexandre Padilha, announced the advance of R$10 billion to compensate states and municipalities with ICMS losses. This transfer would take place in 2024, but the government wants to do it in 2023. He also announced an extra installment from the Municipal Participation Fund (FPM) to compensate for the drop in revenue in recent months. The actions will be processed in the National Congress, as a matter of urgency.
“We are satisfied with the proposal and will monitor the progress. Municipalities need revenue to meet the demands of the population and the losses worry managers”, assessed the president of ABM, Ary Vanazzi.
Source: BdF Rio Grande do Sul
Editing: Marcelo Ferreira