Brazilian government and congress agree on restructuring 100 billion reais in rural debts

President of the Brazilian Chamber of Deputies Hugo Motta and Treasury Minister Dario Durigan announced an agreement to restructure rural debts amounting to approximately 100 billion Brazilian reais. The two sides came together following months of negotiations and certain disagreements in the Senate's text to produce a balanced solution. The government stated that the decisions made are in line with fiscal discipline measures.

The new regulation allows producers affected by crop losses to make payments with terms of up to eight years. Farmers who have experienced crop losses due to climate events or agricultural price fluctuations will not be required to make a down payment. The interest rates of the application vary depending on the producer's profile and their utilization of support programs such as Pronaf and Pronamp.

Treasury Minister Durigan expressed that Banco do Brasil is ready to serve indebted farmers and that steps have been taken to ensure the new planting season plan proceeds smoothly. Initially, the government wanted the restructuring to cover only debts arising from climate-related disasters such as floods. However, as a result of negotiations with the Parliamentary Agricultural Front, debts arising from general market conditions were also included in the package.