Banco do Brasil Bill 5,122 Advances in the Senate – Mixed Take – Increased Farmers Eligibility vs. Fiscal and Implementation Uncertainties

研报英文原文证据摘录

Banco do Brasil Bill 5,122 Advances in the Senate – Mixed Take – Increased Farmers Eligibility vs. Fiscal and Implementation Uncertainties

J P M O R G A N Latin America Equity Research

11 June 2026

Banco do Brasil

Bill 5,122 Advances in the Senate – Mixed Take – Neutral

Increased Farmers Eligibility vs. Fiscal and BBAS3.SA, BBAS3 BZ

Implementation Uncertainties Price (10 Jun 26):R$19.00

Latin American Financials

Yesterday, the Brazilian Senate approved PL 5,122/2023 to support the Yuri R Fernandes AC

agribusiness sector (link), with subsidized credit lines at 3.5%-7.5%. We already (1-212) 622-3400

discussed this bill in past research and how this could allow up to R$180bn of debt yuri.r.fernandes@jpmorgan.com

refinancing, repayable over up to 13 years. We are unsure if this number remaisn J.P. Morgan Securities LLC

the same, as the approved bill appears to have a broader eligibility for farmers – Guilherme Grespan

from extreme climate events to also including geopolitical events and higher cost (55-11) 4950-3058

guilherme.grespan@jpmorgan.com

of inputs, among others. The bill now needs to be revisited in the Lower House, as Banco J.P. Morgan S.A.

there were several changes. In addition to the broader eligibility, it also accepted Fernanda Sayao

an amendment proposing the creation of a Guarantee Fund for Agribusiness (FG- (55-11) 4950-6588

Agro), on which we need more details. We still have several practical questions fernanda.sayao@jpmchase.com

regarding the fiscal cost, how this will impact banks – particularly Banco do Brasil Banco J.P. Morgan S.A.

– and whether the government will veto it or even judicialize the matter, especially Diego Marquez Antonio

given that news articles mention a potential fiscal cost of over R$800bn over time (52-55) 5339-94899

(link).