Rural credit disbursements from Banco do Brasil reach R$200 billion and break a record

Rural credit disbursements from Banco do Brasil, the leader in this segment in the country, reached R$200 billion in the first ten months of this 2023/24 harvest, a new historical record. Throughout the 2022/23 cycle, the amount reached R$196.6 billion. From July last year to last April, R$179.1 billion were released by the institution in rural credit operations per se, with emphasis on funding, and R$20.9 billion was allocated to value chain financing.

Although the amount disbursed continues to rise, there was an increase in defaults, due to the negative conjunction resulting from crop failure and falling prices of grains such as soybeans and corn. In a conference call with analysts about results, BB’s Vice President of Finance, Marco Geovanne Tobias, stated that the situation is being monitored. The default rate reached 1.19% in the first quarter of this year, compared to 0.96% in the same period of 2023.

The bank announced in recent days that rural producers in Rio Grande do Sul affected by the heavy rains that have already killed more than 100 people in the State will have debt payment deadlines extended, with the original charges maintained. Other relief measures are being adopted by the state and federal governments. The agricultural and livestock losses caused by the tragedy are already estimated at almost R$800 million.