Brazil Senate Approves Rural Debt Renegotiation Using Pre‑Salt Fund

The Brazilian Senate approved PL 5.122/2023 (also cited as PL 5122/23), creating a special credit line to refinance debts of rural producers affected by climate events or geopolitical shocks. The financing will draw on the Fundo Social do Pré‑Sal and other government‑supervised funds, with limits of up to R$10 million per producer and R$50 million per cooperative or association. Repayment terms can extend to 10‑13 years with up to three years of grace, and interest rates range from 3.5 % to 7.5 % per year depending on the producer’s size. Estimates of the fiscal impact vary: the Ministry of Finance warns of a cost of up to R$140 billion over the next decade, while some analysts project as much as R$817 billion over 13 years. Minister of Finance Dario Durigan said, “Ainda não temos o texto final, mas a estimativa que eu tenho é que isso abrange um universo de R$200 bilhões em operação, cujo custo para o Tesouro ficou de 70 %, o que dá algo de R$140 bilhões para o Tesouro Nacional nos próximos anos.” The bill, reported by Senator Renan Calheiros and supported by Senate President Davi Alcolumbre, now returns to the Chamber of Deputies for further review; the executive may veto it or challenge it before the Supreme Court.