Brazil's Finance Ministry is designing a Guarantee Fund for agriculture to address escalating rural debt driven by extreme weather events and climate-related crop failures. The mechanism, modeled on existing credit guarantee structures, would provide debt renegotiation terms of up to 10 years with a 2-year grace period, funded jointly by the government, banks, and farmers, with estimated public costs reaching R$30 billion or more.

The Luiz Inácio Lula da Silva government is following the PT's historical booklet to the letter, with an expansion of spending and also of public credit, reinforced in an election year. The consequences are known - higher interest rates, financial stress for companies and households, and postponement of adjustments necessary for the solidity of the economy . Read more (05/17/2026 - 22h00)