SAO PAULO (Reuters) – Brazilian โpresident Luiz Inacio Lula da Silvaโค unveiled a $2.21 billion (12 billion reais) debt relief package Fridayโค designed to aid up to 100,000 โฃagricultural producers grappling with financial hardship. The initiative primarilyโ targets small and medium-sized farmers impacted by recent climate events andโ aims to stabilize Brazil’s vitalโ agricultural sector.
The package comes as Banco doโฃ Brasil,the nation’s largest state-run bank,confronts record default rates within its agribusiness loanโค portfolio. Brazil’s agricultural sector, aโ key global supplier โof commodities like grains, coffee, and meat, has been under increasing strain โคfrom severe weather, high โฃinterest rates, and rising inputโข costs. Lula’s executive โorder โขguarantees the relief funding for eligible producers.
“Today I signed an executive order that guarantees โขthe renegotiationโข ofโ rural debts under special conditions,” Lula stated in a โคsocial media post. “This meansโข more security for those โwho work the โขland, โmore food onโฃ Brazilian tables, and a stronger country in the โคface of climate change.”
Currently, Banco do Brasil reports approximately โฃ20,000 โclients in default, accordingโฃ to CEO Tarciana Medeiros’s statementโค last month. The relief package โis intended toโ bolsterโค food security and provide crucial support to farmers facing climate-related difficulties.
($1 = 5.4212 reais)
(Reportingโ by Fernando Cardoso; Editing by Aurora Ellis)