Money comes from the Safra Plan and will be applied to an emergency line; loan will be provided via BNDES and BB
Milk producer cooperatives will be entitled to an emergency credit line of R$ 707 million, announced the Ministry of Finance in a decree published on Monday (22 January 2024) on Official Diary of the Union. The measure reallocates resources from the 2023/24 Harvest Plan to the temporary and special line of credit for working capital. Here's the complete (PDF – 427 kB).
Called Procap-Agro Giro (Agricultural Cooperative Capitalization Program) Range 2, the emergency line aims to help producers affected by the low price of milk.
The creation of the credit line was approved by the CMN (National Monetary Council) in December.
Two financial institutions, BNDES (National Bank for Economic and Social Development) and Banco do Brasil, will operate the financing. The development bank will have R$507.485 million to lend and BB, R$200 million.
Producers will be able to take out, until June 30, loans of 8% per year and 60 installments, with a grace period of 24 months to pay the first installment.
With information from Brazil Agency.
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