Securitization of debt in rural Brazil: the case of Bank of Brazil / Securitização da dívida rural brasileira: o caso do Banco do Brasil

AUTOR(ES)
DATA DE PUBLICAÇÃO

2010

RESUMO

At the beginning of the 1990s, rural producers were indebted and would not have been able to pay their financing if there had not been the renegotiation of those loans, called securitization of rural debts. The Bank of Brazil suffered negative impacts on its balance sheet caused by the default of the producers, mainly for being the most important institution in terms of rural credit. After a long negotiation process, the 9,138 Law of 1995 was approved, initiating the process of securitization of debts. Based on the interpretation of the laws about securitization and on the analysis of the data from the information report of the Bank of Brazil, a detailed analysis was made on the economic and financial behavior of that institution and it was concluded that the securitization was essential for the bank to reverse its losses into profits.

ASSUNTO(S)

bancos crédito rural rural debt. bank of brazil securitization dívida securitização.

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