Banco do Brasil: New Agribusiness Measure: Smaller Program, Higher Rates

研报英文原文证据摘录

Banco do Brasil: New Agribusiness Measure: Smaller Program, Higher Rates

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

15 July 2026

Banco do Brasil Neutral

BBAS3.SA, BBAS3 BZ

New Agribusiness Measure: Smaller Program, Higher Price (15 Jul 26):R$20.57

Rates

Latin American Financials

As expected, the government announced today (link) a new provisional measure Yuri R Fernandes AC

(MP) to operationalize a rural-debt renegotiation framework, following months of (1-212) 622-3400

political friction around PL 5,122/2023 (the Senate-approved version we discussed yuri.r.fernandes@jpmorgan.com

in the past). The “new MP” looks more fiscally constrained and more targeted than J.P. Morgan Securities LLC

the Senate bill, with the headline renegotiation scope now discussed at ~R$100bn Guilherme Grespan

(vs. prior discussions of up to ~R$180bn). The MP also reduces the repayment (55-11) 4950-3058

guilherme.grespan@jpmorgan.com

term, from 10 years (in the prior approved bill) to ~8 years in most cases, and Banco J.P. Morgan S.A.

increases interest rates from 3.5%–7.5% to ~6%–12% (in general terms, though Fernanda Sayao

some farmers may qualify for lower rates). It also allows capital market CPR to be (55-11) 4950-6588

part of the deal and creates the guarantee fund for the sector. In summary, the new fernanda.sayao@jpmchase.com

version should reduce fiscal noise by lowering the subsidy burden and improve Banco J.P. Morgan S.A.

overall program sustainability. At the same time, this still implies subsidizing rates Diego Marquez Antonio

for farmers (i.e. part of the cost being paid by the treasury) which for banks should (52-55) 5339-94899

be good as it increases the likelihood of farmers to pay while the end of the noise diego.marquez@jpmorgan.com

J.P. Morgan Casa de Bolsa, S.A.