Brazilian farmers will have 222.7 billion reais (57.7 billion US dollars) to finance the harvest of 2019-2020, and interest rates will rise for the largest producers, as the Brazilian government is trying to curb its large budget deficit.
This was stated by Brazilian Minister of Agriculture Teresa Cristina Diaz, adding that the government will also try to develop new sources of funding.
Total financing will grow by only 0.28% compared to last year, but interest rates will increase for large producers: with an annual interest rate increasing from 7% per year to 8%.
The Ministry of Agriculture said the government decided to levy more funds from financing large producers because of the need to balance the federal budget.
Minister Diaz also announced that Brazilian President Jair Bolsonaru will publish a decree on incentive measures for financing agriculture, such as new refinancing conditions for producers who will use funds from the Brazilian Development Bank BNDES.
The decree will also allow the issuance of dollar-denominated debt certificates guaranteed by the crop to facilitate their purchase by foreign investors.
