R$ 600 Million Allocated from the Operations Guarantee Fund (FGO)
The Banco do Brasil (BB) announced this week the activation of the Operations Guarantee Fund (FGO) to support new financing for small and medium rural producers in Rio Grande do Sul affected by the severe climate events of April and May 2024.
Fund Details
- Allocation: R$ 600 million from the FGO
- Coverage: Up to 100% of financing for the Pronaf Mais Alimentos and Pronamp Investimento lines.
- Eligibility: Farmers and livestock producers in municipalities declared in a state of calamity or emergency, as recognized by the Federal Executive Branch.
A Step Towards Recovery
Luiz Gustavo Braz Lage, BB’s Vice President of Agribusiness and Family Farming, highlighted the initiative:
“The FGO drives credit and supports BB’s efforts in government actions, addressing rural producers’ needs for the investments essential to sustaining their activities and businesses.”
BB confirmed that the first operations under this new structure have already been contracted.
Federal Support Boosts Access to Credit
The recent R$ 600 million contribution to the FGO by the federal government has eased the establishment of guarantees and expanded access to credit for small-scale and medium-sized producers struggling to secure traditional financing.
Broader Financial Assistance in 2024
- Emergency Credit: R$ 1.1 billion disbursed to over 9,000 family and medium-scale farmers in Rio Grande do Sul.
- 2024/25 Harvest Plan: Over R$ 11 billion allocated in credit, including agribusiness value chain lines and securities.
This initiative underscores BB’s commitment to strengthening rural investments and supporting the recovery of agricultural activities in the region.
