Brazil: BNDES suspends 9 lines of financing for agribusiness

The National Bank for Economic and Social Development (BNDES) suspended nine lines of agricultural financing on Monday 6.

Two weeks earlier, President Luiz Inácio Lula da Silva announced that the institution would resume lending money for engineering projects in countries like Cuba and Venezuela, which have already defaulted on other debts of the same type.

As the data on the BNDES website show, Cuba and Venezuela are among the most debtor countries in the bank’s financing lines.

In addition, many of these credits funded projects linked to companies involved in corruption scandals.

Construction companies such as Odebrecht, Camargo Corrêa, and OAS are on the list.

According to Valor Econômico newspaper, here are the suspended lines:

• Agribusiness Custodial Credit Program;
• Lines of Investment of the National Program for Strengthening Family Agriculture;
• Financing line of the Pronaf Investment aimed at the isolated acquisition of reproductive animals, breeding stock, service animals, semen, ova, and embryos;
• Line of credit from Pronaf Investimento aimed at the acquisition of tractors and associated implements, harvesters and their cutting platforms, as well as agricultural machinery for spraying and fertilizing;
• Investment line of the National Program of Support to the Medium Rural Producer;
• Program for the Adaptation to Climate Change and Low Carbon Emission in Agriculture and Livestock (ABC+ Program), exclusively concerning the ABC+ Recovery, ABC+
• Organic, ABC+ Direct Planting, ABC+ Integration, ABC+ Forests, ABC+ Waste
• Management, ABC+ Palm Oil, ABC+ Bio-Inputs, ABC+ Soil Management lines;
• Program for the Construction and Expansion of Warehouses (PCA);
• Program for Financing Irrigated Agriculture and Protected Cultivation;
• Program for the Capitalization of Agricultural Cooperatives.

With information from Revista Oeste