Brazil mulls credit line in yuan for farmers, ag minister says

Interest in China is 2%
calendar icon 2 February 2024
clock icon 1 minute read

Brazil is considering creating a credit line in yuan for farmers, Agriculture Minister Carlos Favaro told Reuters on Thursday, saying that it could be a next step after "successful" dollar-denominated lines.

"Perhaps a line in yuan could be structured," Favaro said on the sidelines of an event at the presidential palace. "In China the interest is 2%, much lower (than in other places)."

China is Brazil's main trade partner and a major buyer of farm products produced in the South American nation, including beef, soybeans and corn.

Favaro said the government is keen on helping farmers better prepare for times of crisis, citing weather that partly spoiled the country's soy crop this season.

He defended measures to make credit cheaper as a way to achieve that and he also said the government is pushing for modernization of farmer insurance.

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