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World Bank Approves Neeranchal National Watershed Project, India

hh01 — Sun, 20 Jul 2014 05:48:58 +0000

Neeranchal National Watershed Project to improve watershed management in rural rainfed areas.
Today, watershed development is critical to India’s development as vast stretches of agricultural land are in rain fed regions, characterized by extensive land degradation, low rainfall, reduced agricultural productivity, and higher rates of poverty.
The project will be implemented over a six-year period and will provide technical assistance to the Government of India’s national Integrated Watershed Management Program (IWMP), which is the second largest watershed program in the world after China.
The project will strengthen the capacity of key national and state level institutions currently implementing watershed programs such as the IWMP, including the central Department of Land Resources (DoLR) and the State Level Nodal Agencies (SLNAs) for more effective planning, implementation, monitoring and evaluation of their programs. It will support the preparation of integrated science-based, participatory watershed plans with a greater focus on water management. These plans will guide investments to improve more efficient use of water for agriculture, recharge local groundwater, and enhance the convergence of various programs in order to ensure more effective use of public resources.
The project will help farmers adopt new soil, water and crop management techniques to increase vegetative cover, reduce soil erosion, and improve agricultural yields. It will facilitate access to real time weather forecasts and help farmers adopt climate smart agricultural practices to mitigate against climate change impacts. It will also improve rural livelihoods through training, better extension services, and strengthened forward linkages to markets.
“Efficient watershed management will help increase agricultural production in rain fed areas, lead to better use of scarce water resources and raise household incomes of farmers”, said Onno Ruhl, World Bank Country Director for India. “For over three decades, the Bank has been working on standalone watershed operations. This project is a huge opportunity for the Bank to help the government in its efforts to improve the outcomes of the national Integrated Watershed Management Program, which forms the cornerstone of the government’s support to watershed development in India.”
The project approved today will support IWMP activities in selected sites in the states of Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Maharashtra, Odisha and Rajasthan. It will cover about 400 sub-watersheds of about 5,000 ha each and reach approximately 482,000 farmer households and 2 million people.
“The Neeranchal Project will support IWMP to improve watershed management practices and demonstrate measurable results in selected sites. It will introduce new approaches and innovative tools for community participation with a more integrated watershed planning process, pilot new field practices that will improve conservation outcomes, water availability, and agricultural yields, and scale up a more effective monitoring and evaluation system to track performance,” said Grant Milne, Senior Natural Resources Management Specialist and World Bank’s Task Team Leader for the project.
The Project will be financed by a credit from the International Development Association (IDA) – the World Bank’s concessionary lending arm – which provides concessional loans with 25 years to maturity, including a grace period of 5 years.

ICE returns masterpiece linked to bank fraud to Brazilian government

hh01 — Sun, 11 May 2014 18:56:07 +0000

NEW YORK — U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) returned a painting linked to a bank fraud investigation to the government of Brazil at a repatriation ceremony Friday in New York. The painting was smuggled into the United States in violation of U.S. customs laws and forfeited earlier this year as a result of civil forfeiture action.
The painting, entitled “Composition abstraite [Abstract composition]” by Serge Poliakoff, once belonged to Brazilian banker Edemarcid Ferreira. He was the founder and former president of Banco Santos, and was convicted in Brazil of crimes against the national financial system and money laundering. In December 2006, Ferreira was sentenced in Brazil to 21 years in prison.
HSI Special Agent In Charge Bruce Foucart stated: “During this seven-year investigation, HSI along with our international law enforcement partners have located, detained and seized approximately 1,000 works of art in Switzerland, France, the United Kingdom and the United States, all belonging to Edemar Cid Ferreira. We hope this most recent painting being returned by HSI and the Manhattan U.S. Attorney’s Office to the government of Brazil assists in the recovery of financial losses. HSI remains committed to investigating the illicit importation of cultural property into the United States and the laundering of proceeds derived from illicit activities.”
Manhattan U.S. Attorney Preet Bharara stated: “Art and antiquities have special value and meaning that cannot readily be quantified. As a result, they have long been the subject of theft and deception, as well as a means to launder illicit proceeds. Art should serve to inspire the mind and nourish the soul, and not be allowed to become a conduit for crime.”
In a related repatriation ceremony held on Sept. 21, 2010, the U.S. Attorney’s Office for the Southern District of New York returned to Brazil two paintings – “Modern Painting with Yellow Interweave” by Roy Lichtenstein (the “Lichtenstein”) and “Figures dans une structure” by Joaquin Torres-Garcia (the “Torres-Garcia”) – that were smuggled into the United States.
As part of the case, a Sao Paulo Court Judge ordered the search, seizure, and confiscation of assets that Ferreira, his associates, and members of his family had acquired with unlawfully obtained funds from Banco Santos. Those assets included the Poliakoff, the Lichtenstein, the Torres-Garcia, and other artwork valued at $20 million to $30 million. The artwork was kept in several locations, including Ferreira’s home in the Morumbi neighborhood of Sao Paulo, the main offices of Banco Santos, and at a holding facility. When Brazilian authorities searched these locations, they found that several of the most valuable works of art were missing, including the Poliakoff.
The Sao Paulo Court sought INTERPOL’s assistance after searching museums and institutions in Brazil for the missing artwork. In October and November 2007, INTERPOL and the Government of Brazil sought the assistance of the United States to locate and seize the missing works on behalf of the Brazilian government. In response, HSI special agents in New Haven, Conn., located and seized a painting by Jean-Michel Basquiat called “Hannibal,” and the U.S. Attorney’s Office for the Southern District of New York filed a civil forfeiture complaint alleging that “Hannibal” had been brought into the United States illegally. Since the filing of the original complaint in February 2008, the United States seized additional works of art and filed two amended complaints seeking the forfeiture of four additional artworks listed in the INTERPOL request for assistance.
The Southern District of New York and HSI investigation revealed that the Poliakoff, the Lichtenstein, and the Torres-Garcia were shipped on December 1, 2006, from the Netherlands to a secure storage facility in New York. The invoices, however, failed to comply with U.S. customs laws in a number of respects. For example, the shipping invoices did not identify the names of the paintings or their artists. The invoices also falsely claimed that the combined value of the paintings was $230. In fact, the combined appraisal value of the paintings was recently assessed in excess of $4 million, with the Poliakoff appraised at $500,000.
After the shipment containing the paintings was imported into the United States, the Lichtenstein and the Torres-Garcia were subsequently sold, but the purchasers later voluntarily surrendered the works to HSI. The Poliakoff was shipped to Switzerland, where it was seized by Swiss authorities in July 2008 at the request of the U.S. Attorney’s Office and HSI.
On Oct. 15, 2010, the Poliakoff was forfeited to the United States. “Hannibal,” which was recently valued to be worth about $8 million, and a sculpture known as the “Roman Togatus” have also been forfeited to the United States. An appeal of that decision is pending.
HSI plays a leading role in criminal investigations that involve the illegal importation and distribution of cultural property, including the illicit trafficking of cultural property, especially objects that have been reported lost or stolen. The HSI Office of International Affairs, through its 67 attaché offices in 48 countries, works closely with foreign governments to conduct joint investigations.
HSI specially trained investigators, assigned to both domestic and international offices, partner with governments, agencies and experts to protect cultural antiquities. They also provide cultural property investigative training to law enforcement partners for crimes involving stolen property and art, and how to best enforce the law to recover these items when they emerge in the marketplace.
Since 2007, more than 7,150 artifacts have been returned to 27 countries, including paintings from France, Germany, Poland and Austria, 15th to 18th century manuscripts from Italy and Peru, as well as cultural artifacts from China, Cambodia and Iraq.
Learn more about HSI cultural property, art and antiquities investigations. Members of the public who have information about suspected stolen cultural property are urged to call the toll-free HSI tip line at 1-866-DHS-2-ICE, or to complete its online tip form.

World Bank President Sees $100 Billion Increase in Lending Ability to Help End Poverty

hh01 — Thu, 03 Apr 2014 20:28:26 +0000

WASHINGTON, April 1, 2014—World Bank Group President Jim Yong Kim today announced a series of measures aimed at strengthening the World Bank Group to better meet the evolving needs of clients, including a $100 billion increase in the lending capacity of the Bank’s lending arm for middle-income countries over the next decade, new innovations in financial management, and a boost in the institution’s ability to provide private sector support. This follows the record $52 billion replenishment of IDA, the World Bank’s fund for the poorest, in December 2013.
Speaking today at the Council on Foreign Relations (CFR) in Washington in advance of the World Bank/IMF Spring Meetings, Kim outlined how the Bank is positioning itself to better achieve its goals of ending extreme poverty by 2030 and boosting shared prosperity for the lowest 40 percent in developing countries.
“We now have the capacity to nearly double our annual lending to middle-income countries from $15 billion to $26 to $28 billion a year. This means that the World Bank’s lending capacity will increase by $100 billion to roughly $300 billion over the next ten years,” said Kim. “This is in addition to the largest IDA replenishment in history, with $52 billion in grants and concessional loans to support the poorest countries.”
Boosting IBRD’s Margins for Maneuver
In addition to the previously announced $400 million in cost savings over the next three years that can be reinvested, Kim described a series of measures at the International Bank for Reconstruction and Development (IBRD)—which provides financing, risk management products, and other financial services to middle-income countries—that have the potential to transform IBRD by substantially increasing its ability to serve its clients. These include:
Increasing IBRD’s Single Borrower Limit by $2.5 billion for Brazil, China, Indonesia, India, and Mexico, with a 50 basis point surcharge on the incremental amount.
Revising IBRD’s minimum equity-to-loan ratio to reflect improvements in portfolio credit risk, enabling more efficient utilization of shareholder capital while remaining financially prudent.
Changing IBRD’s loans terms, including restoring the 25 basis point commitment fee charged on undisbursed balances, and offering longer maturities with increased maturity differentiation.
This will allow IBRD’s annual lending commitment capacity to expand immediately from the current $15 billion in annual lending to more than $25 billion per year. Therefore, the Bank’s clients over the next 10 years can see IBRD’s capacity, in terms of the maximum loan book it can prudently support, increase from about $200 billion to nearly $300 billion, which would also boost the Bank’s countercyclical crisis-response capacity. With an infrastructure financing gap currently estimated at $1.2-1.5 trillion per year in emerging market and developing economies, additional resources that remain attractive relative to bond markets should continue to be in demand.
New Innovations at MIGA move further toward “One World Bank Group”
Kim also described how separate arms of the World Bank Group are working even more closely together to achieve greater efficiencies.
For example, the Bank Group’s political risk insurance arm, the Multilateral Investment Guarantee Agency (MIGA) is entering into an innovative MIGA/IBRD exposure exchange agreement to improve the diversification of each organization’s portfolios, thereby freeing up capacity to support additional business. The first exchange will be of an IBRD exposure to Brazil for a MIGA exposure to Panama, under a MIGA contract for non-honoring of sovereign financial obligations. Both Panama and Brazil will see benefits, as IBRD and MIGA will have more headroom to do additional business in each country.
Kim also noted that MIGA is planning to increase its new guarantee extension by nearly 50 percent over the next four years.
Harnessing the private sector to help end poverty
Kim described how IFC is looking to enhance its support in achieving the global lender’s twin goals, with an expectation that it will close to double its financing over the next decade.
“IFC, the largest provider of multilateral financing for the private sector in developing countries, expects it will nearly double its portfolio over the next decade to $90 billion. In 10 years, we believe its annual new commitments will increase to $26 billion.” said Kim.
The World Bank Group has seen its financial support to developing countries double over the past ten years, from $25.8 billion in FY04 to $52.6 billion in the last fiscal year. The cumulative effect of the additional lending capacity at IBRD, the largest-ever IDA envelope, and growing business at IFC and MIGA will be significant, Kim noted.
“Taken as a whole, the World Bank Group’s annual commitment, which today is around $45 to $50 billion, is expected to grow to more than $70 billion in the coming years. This increased financial firepower represents unprecedented growth for the World Bank Group. We are now in a position to mobilize and leverage, in total, hundreds of billions of dollars annually in the years ahead.”
Enhancing the World Bank’s Equity Management Framework
In his speech at CFR, Kim noted, “We are strengthening our financial house to make sure that we have the capability and financial firepower to scale up our revenue and build our capital if we are going to meet some of the great needs in the developing world.”
Another such measure is to stabilize and protect income generated from IBRD equity to improve the Bank Group’s financial sustainability. An enhanced Equity Management Framework will allow management to respond with more flexibility to changing market and macroeconomic conditions, within agreed rules and risk parameters. The Framework is designed to reduce the interest rate sensitivity of IBRD’s equity income, which accounts for a major portion of revenues, and aims to achieve income stability and protection by applying prudent governance and careful risk oversight.
A Better ‘Solutions Bank’
Kim asserted that the World Bank Group is now on a better footing to help countries meet their development challenges going forward.
“Today, we are now better positioned to be the ‘Solutions Bank.’ We are aligning our programs and our talent to help countries grow more inclusively, which will help the poor and vulnerable lift themselves out of poverty.”

WB/Brazil: More than 1.8 million people to benefit from improved water and sanitation in the State of Espírito Santo

hh01 — Mon, 31 Mar 2014 08:07:46 +0000

WASHINGTON, MARCH 28, 2014 – More than 1.8 million people living in the metropolitan region of Vitória, capital of the State of Espírito Santo, in southeastern Brazil, will benefit from a US$225 million loan approved today by the World Bank Board of Executive Directors. The Espírito Santo Integrated Sustainable Water Management Project will focus on improving the management of water resources, increasing the population’s access to sanitation and reinforcing the State’s capacity to cope with natural disasters.

In Brazil, more than 82 percent of the population lives in urban areas. Rapid demographic growth and urbanization have been a challenge for the establishment of sustainable and equitable water and sanitation services. Only 46 percent of Brazilian have access to sewage collection and approximately 62 percent of the sewage is discharged untreated into the environment

“This partnership with the World Bank will help us to better manage our water resources and to increase access to sanitation expanding our capacity to collect and treat our sewage. Our work plan also contemplates the increase of forest coverage, besides equipping Espirito Santo with a better capacity to manage extreme natural disasters, like the rains that hit the State in December 2013”, says the Governor of Espirito Santo Renato Casagrande.

Water availability and quality suffer from threats upstream from the Vitória urban area. Watershed degradation has led to high levels of erosion, and insufficient sewerage collection and treatment have resulted in water contamination. While the State Water and Sanitation Company (CESAN) has increased sewerage coverage in Vitória from 20 to 60 percent between 2004 and 2012, inadequate wastewater collection and treatment in the municipalities in the Jucu and Santa Maria da Vitória watersheds continue to generate pollution that compromises downstream water resources and coastal areas.

“Providing sustainable and efficient water and sanitation services is a crucial step towards ending poverty and sharing prosperity,” says World Bank Director for Brazil, Deborah L. Wetzel. “Managing water resources is a critical priority for the State of Espírito Santo, for its economy and, most importantly, for its citizens. The project will also help to manage recurrent floods in the State. The World Bank is pleased to be a partner in promoting such important changes.”

The Project will support improved drinking and coastal water quality in the State’s capital and the river basins of the broader metropolitan area. Sewerage investments will ensure adequate wastewater collection and treatment in Vila Velha and Cariacica, in the metropolitan region, as well as in nine other municipalities.

Among the outcomes supported by the Project are:
• Adoption of a State Water Resources Management Plan and River Basin Management Plans;
• Improving the State’s hydrological and water quality monitoring;
• Implementing an environmental management information system; and
• Improving wastewater collection and treatment in selected urban areas, including a household sewerage connection program.

This US$225 million loan from the International Bank for Reconstruction and Development (IBRD) to the State of Espírito Santo is guaranteed by the Federative Republic of Brazil and has a 24.5 years total repayment term, with a 0.5 year grace period.

Caixa Econômica Bank opens agencies in Europe for Brazilians who wish to withdraw from their Guarantee Fund

hh01 — Thu, 10 May 2012 15:07:07 +0000

The Federal bank, Caixa Econômica, and the Ministries of Foreign Affairs and Labor & Employment have launched a service to attend request for withdrawals from the Workers’ Guarantee Fund (FGTS) for Brazilians living in Europe. The launching ceremonies take place today (May in London, England and Thursday (May 10) in Paris, France. The first agencies to receive requests for withdrawals are located in the Brazilian Consulates General’s offices in Brussels, Paris, London and Rotterdam, and the Consular Section of the Brazilian Embassy in Dublin, Ireland.

This service has been available in Japan since 2010 and in United States since 2011. According to Caixa Econômica, these two countries have already provided more than 2,000 payments, totaling around R$ 12 million. According to Caixa Econômica, Brazilians living in other countries will also benefit from this initiative.

Brazilian workers residing in Europe interested in making a withdrawal from their FGTS may obtain further information on the Caixa website:

http://www.caixa.gov.br/fgts/pf_saque_exterior.asp

The payment will be credited to the employee’s account with Caixa Econômica or other bank in Brazil. If the employee does not have a bank account in Brazil, they can appoint a trustee, informing the bank details for the credit, which will be transferred within 15 business days from delivery of the documentation.

Central Bank maintains in 3.5% the estimative of economic growth this year

hh01 — Tue, 03 Apr 2012 15:26:10 +0000

The Central Bank (BC) maintained the estimative of economic growth – Gross National Product (GNP) – this year in 3.5%. The information is part of the Inflation Report released this week by the Central Bank.

According to the institution, the Brazilian economic activity has showed a moderate decrease in 2012, due to the effects of the economic policy and some deterioration of the international environment, but the perspectives point out to acceleration this year. In 2011, the economy grew 2.7%.

According to the report, “the maintenance of favorable conditions in the labor market and consumer confidence at high level, as well as the improvement in business confidence indicators, suggests consistency in the process of regaining economic growth.”

On the external scenario, the Central Bank highlights the “recovery of the U.S. economy,” beyond the “perspectives of financial conditions stabilization in the Euro Zone” and the accommodation of the economy in Asian countries, still at high level. According to the Central Bank, this scenario could favor Brazil’s economic activity in the coming months.

BRICS study group creation to organize a development bank

hh01 — Sat, 31 Mar 2012 13:05:40 +0000

Brazil, Russia, India, China and South Africa will join efforts to have a specific development bank for the group of BRICS – formed by five countries. A working group formed by technicians from five nations will conduct the studies to organize and put together the financial institution. However, before consolidation, the group will internally negotiate with local currencies.

The decisions were set yesterday in a joint statement signed by the President Dilma Rousseff and by the Presidents Dmitri Medvedev (Russia), Hu Jintao (China) and Jacob Zuma (South Africa), in addition to the Prime Minister of India, Manmohan Singh, at the closing of the 4th Summit of the BRICS, in New Delhi, India. The President stated that the creation of the bank is a “positive indication”. According to her, the BRICS countries indicate that it is possible to grow economically by creating jobs and distributing income. She praised the joint initiative to adopt local currencies on the internal negotiations of the group. “The BRICS [countries] are a dynamic element in the international trade,” she concluded.

The proposal to create a development bank of BRICS was presented by the Indian prime minister. The idea is that the new institution is to become a kind of alternative to the World Bank and for the International Monetary Fund (IMF). The details will be set by the working group that will organize its creation. For the Brazilian negotiators, the process of a bank creation will occur over the long term, as it will be necessary to define a number of aspects such as reference terms, the body structure and how the capital will be paid up, along with the practices of bilateral and multilateral trading.

NCR and Scopus Tecnologia ink agreement to accelerate growth in Brazil

hh01 — Sat, 06 Aug 2011 12:01:05 +0000

NCR Corporation and Scopus Tecnologia Ltda, a wholly-owned subsidiary of Banco Bradesco SA, announced Friday the formation of a strategic alliance for the manufacturing and development of ATMs in Brazil that will see Scopus acquire a 49 percent equity stake in NCR Manaus, NCR’s Brazilian manufacturing and engineering operations.

Concurrently, Banco Bradesco signed an agreement with a target for 30,000 ATMs over the next five years, making NCR its preferred ATM provider with an initial order for more than 6,000 ATMs from NCR Manaus. The agreement is subject to regulatory approval. Terms of the deal were not disclosed.

The agreements will enable NCR to leverage Scopus’ deep technology knowledge and geographical presence, improve manufacturing productivity and deliver innovative products more quickly to financial institutions across Brazil, the world’s fourth largest ATM market.

According to Retail Banking Research, the ATM market in Brazil is expected to increase by 27 percent by 2015. The agreement from Banco Bradesco will accelerate NCR’s growth in Brazil and enhance the company’s position in the market.

NCR Chairman and CEO Bill Nuti said the investment is a bold, strategic, and transformative alliance that is perfectly aligned with the company’s corporate strategy as it expands and strengthens its geographic presence and sales coverage.

The move underscores why NCR ultimately decided to open its manufacturing facility in Manaus back in 2009 – namely to respond to customer demand for local sourcing and be closer to a dynamic growing market, said Nuti.

The alliance will enable NCR to leverage Scopus’ local market presence and deep customer expertise, while helping it improve its manufacturing productivity and time to market, Nuti noted.

While the initial scope of the alliance is targeted at NCR’s Financial Services line of business, the alliance is not limited to just this industry segment. Both NCR and Scopus are excited with the potential of this alliance as it puts a solid foundation in place for them to jointly pursue growth and exciting opportunities in their other lines of business in the future, Nuti added.

Through the preferred ATM provider agreement, Banco Bradesco will benefit from NCR’s innovative ATMs and financial self-service technology, which includes multi-function and cash dispense ATMs.

These solutions will be deployed at Bradesco’s existing branches and rolled out to new locations as the bank extends its footprint in Brazil. NCR will service the ATMs within the warranty period, after which Scopus will provide services support.

Banco Bradesco S.A. gains shareholding control of Banco do Estado do Rio de Janeiro S.A

hh01 — Thu, 26 May 2011 04:37:27 +0000

Banco Bradesco S.A. (Bradesco) acquired shareholding control of Banco do Estado do Rio de Janeiro S.A. (BERJ) from the Government of the State of Rio de Janeiro. The investment involved the purchase of 96.99% of common shares and 95.21% of preferred shares, representing 96.23% of BERJ’s capital stock, for a total of R$1.025 billion.

With the acquisition of BERJ, Bradesco also acquired the right to provide services to the Government of the State of Rio de Janeiro including its payroll, supplier payroll, and the collection of state taxes among others services from January 2012 to December 2014. For this right, Bradesco will pay a total of R$748.7 million.

The payment of the amounts mentioned above will occur as follows; 20% of the Price of BERJ and 100% of the Price of Payroll will be made up to 5 days after having fulfilled all conditions, including the approval from the Brazilian Central Bank of the transfer of BERJ’s shareholding control and the signature of the Agreements for Purchase and Sale in a Single Lot of Shares.

A further 80% of the Price of BERJ within 5 days of the approval of the existence and the possibility of realization of BERJ’s tax credits. The amounts above are subject to restatement according to the Selic rate up to the date of payment.

Upon completion of the operation for the purchase and sale of shares, Bradesco will hold a public offering for minority shareholders.

With the acquisition of BERJ, Bradesco expands its presence in the state of Rio de Janeiro and reaffirms its confidence and partnership in its development. This acquisition is of great strategic value to Bradesco and its Shareholders, as it brings in hundreds of thousands of new customers in one of the Brazilian states with great economic potential and important investments, especially those in the exploration of the pre-salt oil layer and the 2016 Rio Olympics and the 2014 World Cup.

Banco Bradesco is one of Brazil’s largest private banks (non-controlled by government) in terms of total assets. The Bank provides a wide range of banking and financial products and services in Brazil and abroad to individuals, small to mid-sized companies and major local and international corporations and institutions.

Its services and products encompass banking operations such as lending and deposit-taking, credit card issuance, consortiums, insurance, leasing, payment collection and processing, pension plans, asset management and brokerage services.

MasterCard and Rev Worldwide launch Brazil’s first Prepaid Card for everyday purchases with Banco PanAmericano

hh01 — Mon, 09 May 2011 12:32:44 +0000

MasterCard and Rev Worldwide launched Brazil’s first prepaid card for everyday purchases with Banco PanAmericano. The prepaid card services will be available throughout all participating PanAmericano stores in Brazil.

The PanAmericano MasterCard Prepaid Card is the only general purpose reloadable prepaid card available in Brazil today and does not limit the card’s use to specific transactions like existing prepaid products.

With no proof of income or credit check required, the PanAmericano Prepaid Card offers a convenient and affordable cash alternative to Brazil’s unbanked population, an estimated 75 million people.

Customers who buy and load cash on the card can make purchases online and anywhere in Brazil or abroad where MasterCard is accepted, withdraw cash from ATMs worldwide, transfer funds between card accounts and use the integrated mobile features to check balances and confirm transactions from their mobile phones with a simple text message.

Eliel Teixeira de Almeida, Banco PanAmericano’s Director of Card Products, noted that Brazil’s rapid economic development has lifted the living standards of millions of its citizens, but many Brazilians still do not have access to basic banking services.

Prepaid cards in other markets have proven an excellent alternative for promoting financial inclusion among these consumers since the cards do not require proof of income or a credit check, he said.

The percentage of Brazilians who do not use banking services is close to 40 percent according to IPEA, an economic think tank in Brazil, and 55 percent of employees in Brazil are paid in cash shows recent research from the Brazilian Central Bank.

Marcelo Tangioni, Vice President of Products at MasterCard, said the launch with PanAmericano represents a strategic move for MasterCard since the prepaid card is an ideal instrument for financial inclusion that allows unbanked consumers to access the electronic payments network.

In addition, it’s the right time to introduce the card – the prepaid market is in full swing in Latin America and today represents a US $12 billion market opportunity that could reach up to US $80 billion by 2017, said Tangioni.

According to Roy Sosa, Chairman and CEO, Rev Worldwide, the Company’s experience in markets around the world is demonstrating that the combination of prepaid cards and mobile phones offers a powerful mechanism for bringing more consumers into the mainstream financial system by delivering flexible, safe and accessible cash alternatives to consumers who need them most.