Brazil Moves to Extend Agribusiness Debt Repayment to Ten Years

Minister of Finance Dario Durigan announced that the government will extend the repayment period for a proposed agribusiness debt restructuring law from six to ten years, with a grace period of up to two years before the first installment. The amendment targets the stressed rural credit portfolio valued at roughly R$170‑180 billion, covering overdue, renegotiated and defaulted loans.

The legislation also proposes the creation of an agribusiness guarantee fund modelled on the banking sector’s FGC, to be financed by public resources, banks and farmers. Fiscal impact estimates vary, with Senate figures citing a R$100 billion cost over ten years and the Finance Ministry’s technical note projecting an R$830 billion impact over 13 years. The text is being finalised for the Senate’s Economic Affairs Committee (CAE) and is expected to be presented for vote early next week.