Last May, the Central Bank recorded an accumulation of R$ 306.8 billion in agribusiness debts within the financial system. At the time, consultants’ surveys also showed an inventory of approximately R$ 600 billion with non-financial agents, such as trading companies and suppliers, maturing until February 2020.
These are the most updated figures known. But there is an unspecified amount of practically unrecoverable debts.
But considering the sector’s gains that have been accumulated for several harvests, especially among cereal producers, the reduction is felt among the agents that operate in the various credit recovery ends.
This is where NPL Brasil comes in, one of the main managers of nonperforming loans (NPLs) in the country, managing over R$ 5 billion of the defaulted (or non-performing) agribusiness portfolio. This still represents 80% of the total value of credits managed by NPL, but is falling.
“From January to August, the number of rural producers almost tripled,” says NPL CEO Christian Ramos, making reference to debtors’ demand to be able to save their financial situation with institutions and companies.
Basically, NPL, which qualifies itself as the largest independent manager in this niche business, buys the portfolios of the creditors and will seek the repactancing with the debtors.
According to the perspective of NPL’s CEO, the projections are for a 250% increase in agreements within the agribusiness chains.
Original Story: Agro Times| Giovanni Lorenzon
Photo: Photo by Magda S for FreeImages.com
Edition and Translation: Prime Yield