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Credit for railroad will have lower interest, says Borges

The financing conditions of the concessions of railroads should follow the same conditions as highways, but there will be differentiation of interest rates on loans. The fee charged by public banks will be 1% per year plus TJLP (Long Term Interest Rate) and of the private institutions will be up to 2% per year plus TJLP.


The statement was made by the Transport Minister César Borges, after meeting with the Finance Minister Guido Mantega. According to Borges, the interest rate for the financing of railroads is smaller than the highways in order to make investment more attractive. The program of new railroads in the country is a more ambitious program. So we lowered interest rates in order to be more attractive, said Borges.


The minister said that the private sector will also be called to discuss the issue of concession financing. We have been talking with the private sector. This was a preliminary conversation in the public sector, he said.


The Chief Minister of the Civil House Gleisi Hoffmann said through her press office that financing conditions defined for highway concessions should increase private sector interest. The entire model was agreed with the government, public banks and private sector. These are long-term projects and require special conditions, said Gleisi through a statement released yesterday.

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