Brazilian bank backtracks on move to stop financing defense industry – By Pedro Pligher (Defense News) / Feb 29, 2024
SAO PAULO — A leading Brazilian bank has reversed its decision to cease using its own resources to finance the defense industry, according to the government.
Defense News reported earlier this month that Banco do Brasil declared its intention to stop financing defense companies, citing governance and sustainability policies.
The U-turn follows a meeting held Feb. 26 involving the bank’s president, Tarciana Medeiros; Brazil’s vice president and the minister of development, industry, commerce and services, Geraldo Alckmin; the minister of the civil house, Rui Costa; and the defense minister, José Múcio Monteiro.
“The decision will prevent losses to companies in the sector that were at risk of losing contracts and will contribute to the sustainability and autonomy of the Defense Industrial Base,” the Ministry of Development, Industry, Commerce and Services said in a statement this week.
