The president of Banco do Brasil, Tarciana Medeiros, stated this Thursday that the worsening in defaults in the rural portfolio is not widespread, after the third quarter results showed a strong deterioration in the segment, causing the bank to significantly increase its provisions.
“There is no crisis in Brazilian agribusiness”, reinforced the executive in a video conference with analysts about the bank’s balance sheet released on Wednesday night. Medeiros drew attention to what he called “something new”, which is an increase in requests for judicial recovery from rural producers, despite still having a minimal representation in the bank’s results. “It is an instrument used by few, but it has negative effects on everyone”.
“RJ for rural producers makes access to credit unfeasible, compromises trust in the agricultural chain, creates a disruption in the economic activity of women and men in the countryside, and impacts the cost for the entire segment”, he reinforced.
Most of the increase in rural defaults “is related to soybean cultivation, especially in the Central-West region”, stated the BB president.
In the third quarter, BB’s provisions for loan losses grew 34.2% year on year, with the credit risk line increasing 26.9%, mainly explained by the increase in defaults in the agro segment. The index over 90 days rose to 1.97%, from 0.71% a year earlier.
By Paula Arend Laier
