Overview
- Officials say the executive will publish a Medida Provisória next week to create a definitive, fiscally capped framework for renegotiating rural loans.
- The proposal sets differentiated tenors with eight years as the general rule and up to ten years for producers who prove repeated, severe climate losses.
- Renegotiation caps would be R$8 million per CPF for climate-related losses and R$4 million per CPF for losses tied to price volatility, with tiered interest bands under discussion.
- The MP will force banks to accept existing collateral on overdue operations and require proportional guarantees, a response to lenders’ reports of rising delinquency linked to expectations of rule changes.
- Durigan said the changes would cover roughly R$100 billion in operations and add about R$2–3 billion a year to the Treasury; Congress will have 120 days to approve or reject the measure after publication.