Brazil Finance Minister Dario Durigan warns against harming agribusiness amid rising debt

Finance Minister Dario Durigan said Brazil’s agribusiness sector is seeing its default rate jump from a historical 2% to about 6%, while 94% of its operations remain cash‑based. He cautioned that sweeping debt‑renegotiation measures, such as blanket interest caps, could restrict credit and hurt the sector.

Durigan emphasized the need to target only delinquent borrowers, proposing a negotiated restructuring with Congress that would extend terms, adjust the agricultural credit manual and modify grace periods. He also mentioned creating a guarantee fund to assist tenant farmers lacking collateral, though he warned the government’s fiscal situation limits immediate funding.

The minister urged a balanced approach that sustains Brazil’s primary economic engine without creating a “shoot‑in‑the‑foot” scenario for agribusiness.