New Thematic Chamber will discuss private credit as a rural financing option

The Ministry of Agriculture and Livestock (Mapa) launched on Wednesday (26/04) the Thematic Chamber for Credit Modernization and Agribusiness Risk Management Instruments. The objective is to promote discussions on private credit to diversify financing sources, stimulate competitiveness and reduce costs for producers. 

Composed of representatives from 46 bodies and entities, the new forum is the result of the modernization of the former Thematic Chamber of Credit, Insurance and Agribusiness Marketing, which was focused on public agricultural credit mechanisms. This work will be continued as a Technical Group of the new Chamber. Ordinance No. 579, which establishes the Thematic Chamber, was published in the Official Gazette of the Union. 

For Minister Carlos Fávaro, the Chamber will develop financing models to irrigate the market and make agriculture grow even more. “This Sector Chamber fulfills the role of thinking about new forms of financing so that agriculture fulfills the great role of generating opportunities, jobs and income for the Brazilian people”. 

The president of the Chamber is Thiago Rocha, representative of the Brazilian Association of Fintechs (Abfintechs). According to him, the objective of the new forum is to expand the discussion on rural credit to the private market. 

“Private credit ended up becoming very relevant in the financing basket, so we have to look at what we can improve in the business environment so that private companies can do their best and help agriculture continue to grow. Official credit continues to belong to the Chamber, but with a modernization bias”. 

The Sectoral and Thematic Chambers are groups to discuss the main themes of the sector, with the participation of governmental, business and civil society entities. The General Coordination of Support for Sectoral and Thematic Chambers, of the Mapa Agricultural Policy Secretariat, currently has, within the scope of the National Agricultural Policy Council, 37 chambers in operation (31 sectoral and 6 thematic). 

According to the minister, the Chambers will be strengthened in their management. “The Chambers are a wonderful instrument, where civil society, through class entities, donate a period of their time to collaborate with the elaboration and modernization of public policies”, said Fávaro