BNDES doubles rural credit dollar line with increase of R$4 billion | Credit and Investment

BNDES doubles rural credit dollar line with increase of R$4 billion | Credit and Investment
BNDES doubles rural credit dollar line with increase of R$4 billion | Credit and Investment
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The National Bank for Economic and Social Development announced this Friday (2/2) the expansion by R$ 4 billion of the line with fixed rate in dollars of the rural credit. The measure was announced alongside a series of actions aimed at improving agribusiness credit conditions, including the expansion of BNDES Procapcred, aimed at credit cooperatives.

Launched in April 2023, the BNDES Fixed Rate in Dollars (TFBD) offers a financing option with a cost linked to exchange rate variation, which is advantageous for clients whose income is linked to the dollar.

Within the scope of the BNDES Rural Credit product, the amount approved using the TFDB totaled R$3.62 billion in 2023, from an initial available budget of R$4 billion. Given this, the BNDES decided to increase its allocation by R$4 billion – taking the total available in financing using the dollar rate to R$8 billion.

BNDES’s financial director, Alexandre Abreu, highlighted that the line does not have any source of subsidy. “It is a direct source from BNDES, but with a very low spread,” he stated.

LCAs

At the event, the bank’s board of directors also announced the raising of R$808 million in Agribusiness Letters of Credit (LCA) to reinforce BNDES funding to finance the sector under more favorable conditions.

“The Central Bank has never shied away from its regulatory and supervisory role. The rules that we impose on the financial system are the same as those imposed on credit cooperatives”, stated the director of regulation at the Central Bank, Otávio Damaso.

The BNDES also announced, this Friday (2), a series of changes to expand the reach of BNDES Procapcred, created in 2006 to strengthen the equity structure of the country’s credit cooperatives.

To reinforce the program’s reach, BNDES approved a new budget allocation of R$2 billion and extended the program’s validity until the end of 2025. The list of clients served was also expanded.

Previously limited to cooperative legal entities and individuals characterized as self-employed members, BNDES Procapcred will now cover any individual member of a credit cooperative or cooperative bank, as long as they are a natural resident and domiciled in Brazil.

According to BNDES’s financial director, Alexandre Abreu, the previous limitation removed approximately 5 million customers from the program. “It was requested that it be opened, and we announced that hiring has been approved,” he said this Friday.

The bank also announced an improvement in the program’s conditions, with an increase in the financing limit from R$30,000 to up to R$100,000 per customer, every two years, in addition to reducing rates and lengthening terms, with a special focus on cooperative members from the North and Northeast regions.

In operations with clients in these regions, BNDES’ basic remuneration was reduced from 1.1% per year (aa) to 0.8% pa, and the maximum financing term was now up to 15 years. For other regions, the deadline was extended from 10 years to 12 years. The program’s grace period, of up to two years, remains the same for all financing.

According to Abreu, BNDES currently transfers resources to nine cooperative banks or credit unions. The amount transferred by the bank reached R$23.8 billion in 2023, an increase of 63% compared to 2022, when it was R$14.6 billion.

Also participating in the event, at the BNDES headquarters in Rio de Janeiro, were the Minister of Agriculture and Livestock, Carlos Fávaro, the president of BNDES, Aloizio Mercadante and the president of the OCB System, Márcio Lopes Freitas.

The article is in Portuguese

Tags: BNDES doubles rural credit dollar line increase billion Credit Investment

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