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BB announces R $ 103 billion for 2017 and 2018 harvest

Safra Plan

The institution also announced the reduction of interest for the lines of costing, investment and commercialization of business agriculture

On Tuesday (11), Banco do Brasil announced the allocation of R $ 103 billion to finance the 2017/2018 Safra Plan. Of this total, 91.5 billion in rural credit to producers and cooperatives and 11.5 billion to companies in the agribusiness chain. 

The main financier of Brazilian agribusiness, the Bank reported that of the resources made available to producers and cooperatives, 72.1 billion will be directed to costing and commercialization operations and R $ 19.4 billion to agricultural investment loans.

"Agribusiness was instrumental in improving various economic indicators, including inflation," said Banco do Brasil president Paulo Caffarelli during the launch ceremony in Brasilia. "This picture of the sector is the result of the combination of credit and technology but, above all, the efficiency of Brazilian rural producers," added the executive.

Lower interest rates

In addition to the funds available, the financial institution also applied a reduction of 1 percentage point for the costing, investment and marketing lines of business agriculture. As a result, the maximum interest rate ceiling on the program fell from 9.5% per year to 8.5% per year.

In the lines of the National Program to Support the Medium Rural Producer (Pronamp), R $ 15.5 billion will be allocated under the program, with a reduced interest rate of 8.5% a year to 7.5% per year.

The reduced rates for family farming under the National Program for Strengthening Family Farming (Pronaf) were maintained. They range from 2.5% a year to 5.5% a year.

As for the Moderfrota, capital goods modernization program in agribusiness, Banco do Brasil estimates to apply R $ 700 million for investment operations. In addition, the Bank expects to apply R $ 1 billion to expand storage capacity in the 2017 and 2018 harvest seasons.

Source: Portal Brasil, with information from Banco do Brasil