The Committee on Foreign Relations and National Defense approved, on Wednesday (4th), the Message 555/09, from the Executive branch, which submits to the Congress the agreement on financial cooperation with the Federal Republic of Germany to obtain a loan of up to 52 million, in favor of the Credit Program on Renewable Energy.

Celebrated in Brasilia on May 14th, 2008, the agreement provides that the loan will be granted by the bank Kreditanstalt für Wiederaufbau, at reduced interest rates. According to the Brazilian Foreign Ministry, it expresses the mutual wish to consolidate and strengthen the friendly bilateral relations through the development of financial cooperation in a spirit of partnership.

Small Plants
The rapporteur, Deputy Aracely de Paula (PR-MG), notes in his report for the approval that this agreement seeks to stimulate the production of electricity from clean, renewable sources, in small hydroelectric plants.

He stressed that it is not the first time that Brazil and Germany concluded agreements on financial cooperation. Aracely de Paula recalls that on several occasions, the two countries have entered into other international acts alike. "Germany has shown over the past few years, its strong determination to grant loans to Brazil to works focused on the social and human development or related to environmental preservation."

Procedure
With the approval of the message, the agreement follows to consideration by the Chamber in the form of draft legislative decree from the Committee on Foreign Relations.

Reporting - Luiz Claudio Pinheiro / SR
Translation – José B. Schneider