Brazil is hoping global investors demand for green debt will help raise funds for some of its largest infrastructure projects, including a multi-billion railway crossing through a portion of the Amazon rainforest. Latin America’s largest economy is seeking a “green seal” for the $3.1 billion Ferrograo railway.
Brazil’s central bank capped the rates of overdraft loans, one of the country’s most expensive forms of credit. Overdraft loans may not surpass a limit of 8% per month, or about 150% a year, starting on Jan. 6 2020. At present, interest rates on this automatic banking credit averages around 306% a year.