Brazil Senate, Finance Ministry Set Talks to Forge Rural Debt Deal

Overview

• Senators Renan Calheiros and Tereza Cristina, following Tuesday discussions with Finance Minister Dario Durigan, agreed to create joint working groups to craft a single plan.
• A technical meeting set for Thursday, 30 April, will try to align the Senate’s bill with the government’s offer ahead of the new Plano Safra, an annual farm credit package due in June.
• The Finance Ministry proposes R$81.7 billion in relief split between current or extended loans (R$37.46 billion) and delinquent loans (R$44.23 billion), using two credit lines with rates of 6%, 8%, or 12% and down payments of 10% or 20% depending on loan status.
• Senate leaders press for a broader scope near R$170 billion and urge debate on tapping R$30 billion from the Social Fund, a funding source the ministry opposes.
• Next steps could include a vote in the Senate’s Economic Affairs Committee on a compromise text or a provisional measure from the government if a deal takes shape, as lawmakers cite rising costs squeezing producers.