The Brazilian Development Bank BNDES announced a loan of 59 million real (USD 16 million) to Coopavel Cooperativa Agroindustrial, a pig and poultry cooperative in the east of the state Paraná.
The credit line funding the cooperative is the Prodecoop, a program to develop the domestic agriculture and meat business. The loan represents 84.8 percent of the total investments by the cooperative.
The loan is going to finance a unit for the production of pork meet is in Cascavel and the expansion of the poultry barns in Santa Tereza do Oeaste e Lindoeste. The projects are supposed to be completed by June 2017 and December 2016, respectively.
The measure is considered discriminatory since, in general, the Brazilian Development Bank provides credits with below-market interest rates only to legal persons (private or public) based in Brazil. In the case of Predocoop loans, the interest rate is 8.75 percent per annum, whereas the Central Bank’s overnight rate is at about 14 percent.