BNDES Reopens Credit Lines and Announces Over R$2.9 Billion in Rural Loans for the 2022/23 Crop Seasons

The National Development Bank (BNDES) Announced on Thursday (26) the Reopening of Rural Credit Lines Starting from February 1st, and With All of This, There Was the Forecast of Releasing Additional Resources of About 2.9 Billion Reais to Finance the Harvest of 2022/2023, As Noted in the Bank’s Communication. 

This measure came right after the suspension of protocols and the hiring of new operations of credits under the Federal Government’s Agricultural Programs (PAGF), in the second half of 2022, due to the level of resource commitments. 

Of the total planned by the bank, family farming has a large share of 491 million reais, while medium and large producers will have access to 2.4 billion for their expenses and investments, according to the BNDES. 

Some of the lines that were reactivated are: Pronaf (family farming), Pronamp (medium producer), Moderfrota (agricultural machinery and equipment), PCA (storage), and ABC Plan (low carbon agriculture). 

The bank also emphasized that it remains one of the important supporters of the agricultural sector and that these resources reach rural producers and cooperatives, primarily facilitated by partner financial agents. 

“In the 2022/23 Harvest Plan, 16 billion reais have already been approved through partner institutions, including development agencies, car manufacturers’ banks, credit cooperatives, cooperative banks, private banks, and public banks,” he reiterated, mentioning that about 70,000 rural producers and cooperatives have been served since July 1, 2022, when the plan came into effect. 

Even during the entire suspension of the operation protocols in the PAGF, which occurred in the current Harvest Plan, BNDES recalled that it continued to make some credits available to its producers through other proprietary solutions, such as the BNDES Rural Credit Product. 

“Since the beginning of the current harvest year, in June 2022, until mid-January of the current year, approximately 2.8 billion reais have been approved under the product.”

In mid-August of last year, then Agriculture Minister Marcos Montes said he still expected “soon” the resumption of credit lines that were still suspended by the BNDES.

BNDES: LACK OF RESOURCES FOR RURAL FINANCING