SAO PAULO (Reuters) – Brazilian president Luiz Inacio Lula da Silva unveiled a $2.21 billion (12 billion reais) debt relief package Friday designed to aid up to 100,000 agricultural producers grappling with financial hardship. The initiative primarily targets small and medium-sized farmers impacted by recent climate events and aims to stabilize Brazil’s vital agricultural sector.
The package comes as Banco do Brasil,the nation’s largest state-run bank,confronts record default rates within its agribusiness loan portfolio. Brazil’s agricultural sector, a key global supplier of commodities like grains, coffee, and meat, has been under increasing strain from severe weather, high interest rates, and rising input costs. Lula’s executive order guarantees the relief funding for eligible producers.
“Today I signed an executive order that guarantees the renegotiation of rural debts under special conditions,” Lula stated in a social media post. “This means more security for those who work the land, more food on Brazilian tables, and a stronger country in the face of climate change.”
Currently, Banco do Brasil reports approximately 20,000 clients in default, according to CEO Tarciana Medeiros’s statement last month. The relief package is intended to bolster food security and provide crucial support to farmers facing climate-related difficulties.
($1 = 5.4212 reais)
(Reporting by Fernando Cardoso; Editing by Aurora Ellis)