BDMG breaks historic disbursement record in the 2020/2021 coffee harvest

The Development Bank of Minas Gerais (BDMG) will operate resources of around R$355,5 million to finance the 2021/2022 coffee harvest, which begins in July. The values ​​were made available by the Ministry of Agriculture, Livestock and Supply, through Funcafé (Coffee Economy Defense Fund).

Governor Romeu Zema highlights that this amount is the fund's largest budget in Brazil when it comes to banking institutions with regional operations, and the sixth largest overall. “These resources made available by BDMG, through Funcafé, are the result of our serious work and work with the federal government. Financing the harvest is extremely important for strengthening the coffee economy in Minas Gerais”, states the governor.

 The resources will benefit cooperatives and companies of all sizes, through financing of inputs, machines and implements, storage, harvesting and crop formation. “Minas is the largest national producer of coffee, a highly strategic product for the state’s economy. In a pandemic context, BDMG has deepened its operations to provide competitiveness for this value chain, supporting everything from small companies to large cooperatives”, says the bank's president, Sergio Gusmão.

For the 2020/2021 harvest, which is ending, BDMG initially received R$392 million via Funcafé, but requested new limits that led the bank to contract a record R$462 million, 100% of the amount made available to it at the end of the year. process. “The numbers show that the resources made available are being allocated by BDMG efficiently. Therefore, we have already started negotiations with the Ministry with a view to extending the bank's limit for this new harvest, as we did in this one that ends”, highlights Gusmão.

Three lines of credit 

Through Funcafé, there are three credit lines made available by BDMG to the market. The first, Funcafé Comercialização, is aimed at production cooperatives, with a 12-month payment period. The second line is FAC – Coffee Acquisition Financing –, also with a term of 12 months, aimed at traders and exporters, roasting and soluble coffee industries, as well as cooperatives. The third line is focused on working capital financing for production cooperatives and the instant coffee and roasting industry, with a 24-month payment period.