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Brazil: Agri-sector bounces back
20 July 2010
The Brazilian agri-sector hit turbulent times through the worst of the global financial crisis. However, the sector has bounced back well and select international banks are once again working with the better risks. Michele Martensen assesses the agri-sector.
Read more:
Brazil agribusiness
SME Brazil
Chadbourne & Parke
RZ Advogados
Texel Capital
Lula
Agriservice
This article appear in the July/August 2010 print edition of Trade Finance under the title: Looking to a brighter future.
Until late 2009, when money started to move back into the market, it had been an annus horribilis for most involved in Brazil commodities. Defaults in the agri-sector saw international banks exit the market.
With credit lines scarce, trading houses and local banks stepped in. Now Brazil is emerging from the global financial crisis far better than most. The central bank acted quickly to create stability and local banks are liquid and providing finance. Depending on who you talk to, GDP growth is predicted to be between 6% and more than 9% this year.
All in all, the Brazilian banking system is extremely strong. The legacy of past crises means it is heavily regulated. Brazilian banks were not leveraged the way other banks were – particularly in Europe and...
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