Brazil prepares measure to renegotiate over R$100 billion of rural debt

The Brazilian government will publish a provisional measure next week to restructure more than R$100 billion of bank debt owed by rural producers. The proposal sets interest rates between 5% and 12% per year, repayment periods of up to ten years with a two‑year grace period, and two tiers of eligibility: producers with severe climate‑related losses (minimum 40% loss in two harvests) may receive rates of 5%, 8% or 11% and a limit of up to R$8 million per CPF; producers affected by price or income drops (minimum 30% loss) may receive 6%, 9% or 12% and a limit of up to R$4 million. The draft also allows banks to reuse existing collateral and proposes the creation of an agricultural guarantee fund financed by the Union, banks and the private sector. Officials said the measure would add roughly R$2‑3 billion a year to federal expenditures but aims to curb mounting rural defaults and restore credit flow to the agro‑sector.