The growing records of judicial recovery in Brazilian agribusiness are making it difficult to grant credit to producers, as banks become more rigorous in releasing resources, said this Wednesday the Secretary of Agricultural Policy at the Ministry of Agriculture, Guilherme Campos.
‘Because it is the issue that most affects the issue of granting agricultural credit today. It’s a topic that gained a lot of relevance from last year to this year’, he told journalists, during a Lide event, in Brasília.
Among the factors for the increase in requests for judicial recovery, he cited new investors in the segment, with many of them being influenced by law firms that sell solutions to reduce debt.
‘A lot of people came to agribusiness at a time when agribusiness only had good news, at the time it made its first mistake, there were people who were not from the sector who decided on unorthodox solutions’, he observed, according to the audio of an interview released by the event’s advisors.
Requests for judicial recovery in Brazilian agribusiness reached record numbers in the second quarter, with an increase of 31.7% compared to the same period last year, driven by requests from rural producers who act as legal entities (PJ), according to data from Serasa Experian released in September.
In total, considering requests from individual and legal producers and companies related to agribusiness, the total number of RJs requested reached 565. In relation to the first quarter, the increase was 45.2%.
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In view of this, said the secretary, banks protect themselves when granting new credits, ‘with increasingly strict criteria in granting these credits, with more guarantees, with more rigor in this granting’.
Banco do Brasil, the largest agribusiness financier, stated in November that it expected a turning point in agribusiness defaults from the beginning of next year, following a series of measures adopted in recent quarters.
Campos commented that RJ’s requests have been ‘very easy’ to be approved in the first court instance, but in the long term this solution does not prove to be the best.
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‘There are several law firms that see RJ as a solution that will guarantee a substantial discount on the value of this debt and an extension of this value. (But) reality does not prove this, because from the moment it sets in, and throughout the entire process, reality imposes itself’, he stated.
He commented that, in higher courts, the result of the process ‘can be very different from what was sold at the time the judicial recovery was placed’.
The secretary also cited high interest rates and climate problems in some regions as factors that have also challenged the sector in the country.
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