Starting in May, rural exporters in Brazil will have access to a new dollar-denominated credit line to modernize their production. With resources from the National Development Bank (BNDES), loans will have fixed interest rates of 7.59% per year plus the exchange rate variation. With $1 billion available, the credit line will finance the purchase of equipment for the agriculture and livestock sector. Items that can be financed include agricultural machinery, irrigation systems, silos, storage structures, and solar energy systems. Those who commit illegal deforestation will not have access to the credit line. The new line is a low-risk option for exporting agribusiness. In addition to BNDES, partner institutions such as Banco do Brasil, the country’s leading supplier of rural credit, will be able to operate the credit line.
Sources: O Presente Rural/Datamar News