The report of the Draft Law (PL) 7740/17, which strengthens the rural credit cooperative system, as well as stimulates the efficient use of public resources, was approved in the Committee on Agriculture, Livestock, Food Supply and Rural Development of the Chamber of Deputies.
According to the Parliamentary Agricultural and Livestock Front (FPA), the proposal proposes the extension to private banks and to the confederations of credit cooperatives of the mechanism of equalization of interest rates and other financial charges. This instrument encourages financial institutions to direct funds raised in the market to finance the activities of rural producers at more attractive interest rates, for example.
According to Mr Covatti Filho, author of the project, the measure seeks to arouse greater interest of private financial institutions to finance agricultural activity, as well as intensify the role already played by the rural credit cooperative system in strengthening the activities of rural producers.
According to the proposal’s draftsman, Deputy Sérgio Souza, today there are three private banks that still can not raise funds and equalize interest to invest in agriculture and the project wants to extend this to all private financial institutions in the country.
To be definitively approved, the proposal must still go through the Finance and Taxation and Constitution and Justice and Citizenship committees.
This text was translated by machine from Brazilian Portuguese.