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Nordea puts Brazil bonds in ‘quarantine’ over Amazon fires

August 29, 2019

BERLIN (AP) — The biggest bank in the Nordic countries says it is suspending bond purchases from Brazil’s government amid concerns over the way the country is handling fires in the Amazon region.

Helsinki-based Nordea bank said Thursday the “temporary quarantine” means it will not buy Brazilian dollar- or real-denominated bonds pending further review.

Nordea says in a statement its environmental, social and governance assessment for Brazil identified risks from deforestation and plans by President Jair Bolsonaro’s administration to loosen environmental protections.

The bank says the government’s handling of the issue could affect political stability in Brazil, endanger a free trade agreement between the European Union and the Mercosur bloc, and potentially lead to international companies boycotting agricultural produce from Brazil.

Other European institutional investors have also raised concerns about the Amazon fires.

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