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Banco do Brasil ended 2010 as the leader in Brazil's credit market, with a 19.8% market share. The loan portfolio, taking the broad concept which includes guarantees provided and private securites, amounted to R$ 388.2 billion, an increase of 20.8% over 12 months.

Expansion in the loan portfolio was accompanied by an improvement in portfolio quality, and a consequent drop in the non-performing loan rate. As can be seen in the charts below, the percentage of past due loans for more than 90 days continued to be substantially better than that seen for the Brazilian Banking Industry as a whole.


Loan Portfolio1

(R$ billion)
 

Total Non-Performing Loans Rate

(%)
     
 
(1)Includes loan portfolio within and outside Brazil, guarantees provided, and private securities.    
     
     

Non-performing Loans for Individuals(1)

(%)
 

Non-performing Loan rates for Companies(1)

(%)
     
 
(1) Reference credit for interest rates.
Source: Brazilian Central Bank – economic-financial notes for
the press.
  (1) Reference credit for interest rates.
Source: Brazilian Central Bank – economic-financial notes for
the press.


  2009 2010

Considering the evolution in the quality of risk at BB, highlights to the increase in the number of operations with better risk (AA-C).

Notwithstanding the improvement in the quality indicators of the portfolio and the perceptible improvement in the economic and business environment, Banco do Brasil maintained a prudent stance with regard to the balance of its provisions for credit risk and portfolio coverage percentage. The provision balances ended the quarter at a total of R$17,315 million, which provides 212.1% of coverage for past due loans over 90 days.




Loans to Individuals


Lending to individuals rose strongly in 2010, totalling R$113.1 billion. This number means a relative market share of 31.6% of the total portfolio, and an increase of 23.2% compared to 2009. Lending to private individuals is of great social and economic importance, because it facilitates access to consumer goods, products and services, generates incomes and jobs, and stimulates growth in the economy, in a positive virtuous circle, as desired by BB as a social development agent.


Individuals Loan Portfolio

(R$ billion)



(1) Change since 2008.


Payroll Loans

Payroll loans increased by 23.2% during the year, ending the period at R$ 45.0 billion. These loans constitute BB's main consumer financing line. BB is the leader in this segment of operation, with a market share of 32.7%.


Vehicle Financing

Among the most significant consumer credit lines is vehicle financing, which showed an increase of 32.1% compared to December 2009, with a total balance of R$27.4 billion. As a result of the partnership established with Banco Votorantim, Banco do Brasil consolidated its position in this market, ending the year with a market share of 14.5%.


BB Vehicle Credit: New loans for eco-efficient vehicles, and loans for taxi drivers under the Worker Support Fund

As a way of contributing to the preservation of the environment and the sustainability of the planet, special conditions are offered to all clients for the financing of vehicles classified as score 5 in the "Green score" of the Ministry of Environment. As a consequence, BB makes a specific credit line available for the financing of vehicles for taxis at differentiated rates.


Product or Service Socio-environmental Responsibility Characteristic Quantity of Loans Granted Total Portfolio at the end of 2010 (R$ thousands) Characteristics of Products
Environmental Social
Loans for taxi drivers under the Worker Support Fund Financing of vehicles for taxi drivers with funds from the Worker Support Fund – FAT, with the purpose of renewing the vehicle fleet, favouring the generation, maintenance of jobs and incomes, and contributing to the environment, because this financing line is only available to vehicles that use renewable fuels. 1,582 33,657 X X
Loans for eco-efficient vehicles Financing for vehicles classified by the Ministry of Environment as "Score 5" for eco-efficiency, at reduced interest rates for current account holders with BB. 112 2,696 X  


Mortgage Loan

Banco do Brasil operates in the mortgage market with savings funds (Housing Finance System – SFH and Mortgage Portfolio – CH), with its own funds, and those from the FGTS. In the market for loans to private individuals, the Bank offers credit lines for the purchase of new and used residential or commercial property. For companies, credit lines are available for the financing of the building of residential and commercial units. In addition to this, based on the establishment of partnerships with construction firms and real-estate companies, BB offers credit lines at competitive interest rates, and under better conditions, with flexibility and efficiency.

With a portfolio of R$3 billion, Banco do Brasil ended the second half of 2010, according to information published by Central Bank, in 5th position of the ranking of institutions that provide real-estate financing.


Minha Casa Minha Vida


Since 2009, Banco do Brasil has been part of the Minha Casa, Minha Vida Program, with the objective of helping to reach the target of financing 1 million units with the support from the Federal Government Program. Of the total proposed for the program, of 1 million residences, Banco do Brasil intends to contribute with the providing of loans for 10% of these homes, financing families with a gross family income of between 3 and 10 minimum salaries for the purchase of property already built, or at the plan stage.

The lines of credit for the Financing of Company Production guarantee the necessary funding for the completion of real-estate projects offered in the market, providing security to property purchases and also, if opted for by the purchasers, the possibility of financing the property from the moment of purchase, guaranteeing the price at the time of the transaction and protecting the buyer from possible price variations.

Product or Service Socio-environmental Responsibility Characteristic Quantity of Loans Granted Total Portfolio at 2010 (R$ thousands) Characteristics of Products
Environmental  Social
Mortgage loan – Minha Casa, Minha Vida Program(1)

Property developments financed by the Program must:

 

1) Include retirees and those with special needs.


2) Respect norms and adopt environmental prevention attitudes, such as the use of equipment and solutions, solar energy, presents sensors for the intelligent use of electricity, collective waste disposal, individual water and gas meters, capture and use of rainwater, Venetian windows, compact fluorescent lamps, etc.


3) Meet recommendations in the carrying out of works, such as:

a) Minimizing the impact of the work on environment;

b) Use, passively, natural resources from the local environment;

c) Carry out the management and economic use of water and electricity during construction;

d) Promote the rational use of building materials ;

e) Plant trees and encourage the planting of trees on the land;

f) Encourage the use of selective garbage disposals and the reuse of dry garbage;

g) Promote discussions and disseminate among its members, knowledge about the re-use of materials, the rational use of natural resources, alternative methods for low-cost water heating, the use of degradable materials for construction/others, risks arising from non-preservation of the environment, and other pertinent issues.

9 90,045 x x
(1) Transactions performed to foment production.


Microcredit


Microcredit is characterized by lending operations with a low value, normally directed to the low-income public, which does not have access to conventional credit lines. Law 10,735/03 regulates the granting of credits to the low-income population and makes funds available that correspond to 2% of demand deposits captured by financial institutions for microcredit operations, at an interest rate of up to 2% a month.

Banco do Brasil is one of the main agents in the micro-financing market in the country, directing its operations towards the consumer sector. The main distribution channels for these credit lines are: the branch network and the ATM machines, which together account for more than 95% of the loans taken out.

Within the scope of DRS Strategy, BB DRS Microcredit was launched on February 2009, which is a financing line for amounts between R$200 and R$3,000, at interest rates of 0.95% a month, over a period of 60 months, for urban micro-entrepreneurs, such as artisans, embroiderers, shoemakers, small clothing manufacturers, food producers, market stall operators, and environmental agents, among others. BB DRS Microcredit is targeted exclusively at private individuals with a credit limit approved by BB, for the finance of investment and working capital. The amount of loans taken out in 2010 in this category amounted to R$46 million.

The microcredit loan portfolio ended 2010 at R$1.1 billion, an increase of 66.7% compared to previous year, with 1,197 thousand loans in the portfolio, as summarized in the table below:


Total Microcredit 2010
Amount contracted (R$) 1,111,515,756.97
Operations contracted 957,054
Average value per contract (R$) 1,342.27
Quantity of contracts in the portfolio 1,196,824


Product or Service Socio-environmental Responsibility Characteristic Quantity of Loans Granted Total Portfolio at the end of 2010 (R$ thousand) Characteristics of Products
Environmental  Social
Microcredit Line of microcredit available for current account holders with a monthly salary up to R$1000, in addition to retirees and pensioners under the INSS with a monthly benefit up to two minimum salaries 939,126 1,056,419   X
BB DRS Microcredit Line of credit which aims to meet the financing necessities of urban micro-entrepreneurs. For amounts between R$200 and R$3000, an interest rate of 1.0% a month, and a term up to 48 months, this line represents an important tool in providing support for urban entrepreneurs, and beneficiaries under the DRS Business Plan, allowing the loan taker to improve the management of his cash flow. 17,928 61,363   X


Business Loans


Having a wide range of products and services, Banco do Brasil has considerable expertise in providing services to Brazilian companies both in Brazil and abroad. There are a variety of credit and financing options available for micro, small, medium and large-size companies.

The business loan portfolio ended the year with a balance of R$ 149.8 billion, an increase of 19.5% in one year. The business loan portfolio represented 41.8% of BB total loan portfolio at the end of 2010.


Business Loan Portfolio, by Loan Purpose (R$ billion)

In observing a breakdown of the loan portfolio to business, it can be seen that loans for investment represent 22.1% of the portfolio, having increased by 31.3% during the year.

Business Loan Portfolio

(R$ billion)(1)
 

Business Loan Portfolio by Loan Purpose

(R$ billion)
     
 
(1) From 2009 includes portfolios from BV and BNC.    


Loans to Medium and Large Size Companies and Corporations

Banco do Brasil has innumerable financing solutions, of the right size for the medium and large company segments and corporations. In 2010, these segments experience substantial growth in Banco do Brasil's loan portfolio, with highlights to the increase in loans for Working Capital, investments and credit for agroindustry.

With the objective of strengthening its relationship with medium and large size companies and supporting their growth in Brazil and abroad, Banco do Brasil's Wholesale Directorship is being reorganized, undergoing the perfecting of its client services segmentation model and making investment in training its staff, expanding the branch network and increasing the delivery capacity of structured financial operations, including the financing of clients' needs in foreign markets.


Credit for Investments

In 2010 BB accumulated a total of R$23.4 billion in credit to investments.

In addition to this, the Bank maintained its leadership in global disbursements from of the BNDES/Finame system, with a total paid out of R$18.2 billion in 2010. With this performance, BB recorded a market share of 19.4% of the total and ranked 1st of the banks regarding BNDES disbursements.


Credit for Investments

(R$ billion)

(1) Includes BNDES Exim


 

Businesses in the Value Chain

  Agreements also entered into with the Commercial and Industrial Federation of the state of São Paulo, as a way of improving access to credit for its associates, based on the release of existing credit lines and advisory services, particularly with regard to foreign trade.

In addition to this, a pilot project was begun which will permit the bank to participate in financing the "Pre-Salt" value chain, in the program "Progredir", which aims to democratise the access of credit at compatible costs, for suppliers of Petrobras S.A.
  Maintaining its business focus to increase the level of business in the value chain, during the year Banco do Brasil formalised agreements with anchor companies in various segments. Of highlights to the revitalization of the agreement for the financing of suppliers of Vale, of R$150 million, of Nestlé microdistributors, of R$15 million, which aims to increase the participation of the Company in the C and D segments, with a strong sustainability appeal.

Along similar lines, the Bank went ahead with the implementation of an agreement with Petrobras Biocombustível – PBIO, signed in 2009. Also with a focus on sustainability, an agreement was signed for the support of commercial forest planting, with Suzano Papel e Celulose, in projects with small farmers in the states of Piauí and Maranhão, with the global value of R$25 million.
 


Responsible Credit

FS2 | FS3 | FS4 | FS9 | FS10

In the granting of credit, in addition to the criteria and norms defined by the Bank and the financial authorities, the Bank also fulfils social and environmental requirements such as those contained in the Ecuador Principles, in the Green Protocol and the Global Compact, rules to which the Bank has adhered to on a voluntary basis. BB also checks the list from the Ministry of Labour and Employment which identifies companies that submit their employees to forms of degrading work or work that is analogous to slave labour, not granting loans in these cases. The Bank also does not grant loans to companies involved in child labour or the sexual exploitation of minors.

Banco do Brasil adopts socio-environmental criteria in the assessment of the credit limit for companies with current of projected net operating revenue of more than R$ 50 million, investment projects with an amount financed by BB of R$ 2.5 million or over, and all lending under the heading of Project Finance.

In 2010, BB analysed 3 projects in the light of the Ecuador Principles, of a total of R$ 955 million, which represents 0.63% of the company loan portfolio.


Ecuador Principles

  Number of Projects Financed Value of Projects
(R$ thousand)
Amount Financed by BB (R$ thousand) Sectors of Financed Companies
2009 4  27,371,517  2,134,000 Electricity (UHEs) and Ethanol Production
2010 3  5,351,000  955,000 Highway Concessionaires


The projects financed are assessed and monitored in accordance with the dynamics of the undertaking, by an external specialist consultancy, contracted so as to guarantee compliance with the socio-environmental legislation in force, as well as meeting all the directives contained in the Ecuador Principles.

The projects are categorized in accordance with the risk of socio-environmental impacts to which they are subject, and can vary on the scale of high, medium or low. For each undertaking is drawn up an action plan which assists in the management of the project, with a view to meeting the performance standards established by the IFC (Internacional Finance Corporation). The granting of credit, independent of the risks indicated, is only effective when all the recommendations have been complied with.

The contractual obligations are monitored during the implementation of the investment projects. Presentation of environmental licences is required (preliminary, installation and implementation) as well as socio-environmental reports, in accordance with the stage which the undertaking has reached. The frequency of monitoring is carried out in accordance with the validity of the licence, defined by the environmental body and if a case of non-compliance is found, a formal communication is made to the business areas.

The assessment of sustainability follows the international criteria of the triple bottom line, which evaluates the economic-financial, social and environmental dimensions of the companies. The initiative is part of the BB Agenda 21 action plan and the internal processes of the socio-environmental analysis adopted by the Bank become even more transparent, with the Bank having the target in its Corporate strategy of adopting corporate governance standards which are a benchmark reference in the market.


In 2010, for the first time the Bank set up a stakeholders panel to discuss and evaluate socio-environmental practices adopted in credit analysis. Non-governmental organizations, client companies, employees, and representatives of the public sector were invited to participate in studies to perfect the methodology of sustainable analysis today in use at Banco do Brasil.



Micro and Small Business (SME)

Banco do Brasil has a base of more than 2 million SME clients and has developed solutions to better serve this segment.

The balance of loans in the SME's segment ended December at R$ 50.9 billion. Highlights to the loans for working capital, which at the end of December 2010 amounted to R$ 37.0 billion, up 18.5% compared to 2009.

Credit to SME

(R$ billion)
 
  Dez/06 Dez/07 Dez/08 Dez/09 Dez/10
 Working capital            12.9            16.9            23.6            31.3            37.0
 Investment              5.0              6.4              9.3            11.5            13.1
Foreign trade              0.5              1.3              2.0              0.6              0.7
 BNC                -                  -                  -                1.6                -  
 Total            18.3            24.6            34.9            44.9            50.9


The following lines of investment and operations in micro and small business are also worth highlighting:

• BNDES card, a product in which BB enjoys a total leadership position (in terms of values paid out, quantity of cards and quantity of transactions), amounting to a total at the end of December of R$5.3 billion in accumulated payout since the beginning of its sale, representing an increase of R$2.9 billion over the last 12 months, with 66.0% of the cards issued in the markets.


Accumulated disbursements

(R$ billion)



• Proger Urbano Empresarial (Proger Urban Business), principal credit facility for investment in companies in the SME's segment, with a loan balance of R$4.6 billion;

• Finame operations made with micro and small business amounted to a total balance of R$2.6 billion as at the end of December 2010;

• BB Giro APL (BB working capital for local production arrangements) a credit line exclusively offered under differentiated conditions to companies that participate in Local Production Arrangements (APL), with R$2.0 billion available.

APL, Local Production Arrangements complement BB's DRS Strategy in strengthening operations along the value chain, and encouraging the operation of co-operatives and associations as a means to generate jobs and incomes, and being of great importance in serving the SME's segment. In 2010 BB supported 192 APLs, catering to 19.9 thousand businesses and benefiting around 6,000 companies.

For the working capital loan operations for micro and small business, Banco do Brasil extensively used the Operations Guarantee Fund (FGO) as a way of mitigating the credit risks of the operations and expanding the volume of its loan portfolio.

The Operations Guarantee Fund (FGO) is a mechanism which complements up to 80.0% of the guarantees demanded from companies for loans and banking finance, and increases the availability of credit companies, particularly those of a micro and small size, at even more competitive interest rates.

At the end of 2010, 353.6 thousand transaction had been contracted with coverage by the FGO, with a total applied balance of R$ 7.0 billion, which represents approximately 14% of the SME'S portfolio. Operations guaranteed by this Fund represent approximately 24.7% of the funds paid out in credit lines that are linked to this guarantee.

Transactions Carried out Under the FGO


During 2010 Banco do Brasil also supported micro and small business based in municipalities affected by flooding, notably in the states of Pernambuco and Alagoas, through emergency actions which permitted a lengthening in the deadline for loan instalments contracted with BB, without any additional charge for the companies. In this context, BB also remodelled a line of credit destined for the renegotiation of the debt of micro and small business, the lengthening of debt terms and a reduction in interest rates, with the aim of assisting those affected by the international financial crisis.

Banco do Brasil is the bank which most supports micro and small business in the country, and to maintain this leadership position, it seeks to introduce innovations and automation for the development and offering of its products and services. An example of this stance is the 'Gerenciador Financeiro' (Financial Manager), an automated service channel which offers interactivity to SME'S on the internet (internet banking) and through cellular phones (mobile banking), offering services and online access for banking transactions, making day-to-day operations more simple, convenient and secure. In 2010, the number of micro and small business which regularly use Gerenciador Financeiro to carry out banking and financial transactions exceeded 600 thousands.



Products with Socio-environmental Characteristics

The micro and small business segment has a large capacity to generate incomes and jobs. With a focus on this segment, BB makes low cost working capital financing available, among other products and services.


Product or Service Socio-environmental Responsibility Characteristic Quantity of Granted Transactions Total Portfolio (R$ thousand) Characteristics of Products
Environmental Social
BB Giro Rápido (working capital) Preapproved loan to meet the working capital requirements of micro and small business, consisting of two types of credit overdraft and reusable fixed credit. The product has a social aspects because it offers market differentials to micro and small companies. Among these we can cite the financing of purchases by corporate credit card, in other words, the adoption of the interest rates of the products BB Giro Rápido instead of credit card interest rates. In 2010 the product became part of the range of products offered to individual micro entrepreneurs, expanding the social coverage of this type of credit. 139,342 6,058   X
BB Giro APL (working capital for local production arrangements) Loan to meet the working capital needs of micro and small companies that are part of Local Production Arrangements – APL. BB's involvement in APL has the objective of improving its relationship with the micro and small companies segment, through the active participation in the Arrangements, in partnership with other institutions, to map the necessities of these companies and offer appropriate financial solutions, bearing in mind the sustainability of the undertakings and the specific characteristics of each Arrangement. 2,091 94   X
BB Capital de Giro Mix Pasep (Mix Pasep working capital) Loans to meet the working capital needs of micro and small business. In 2009 the products BB Capital de Giro Mix Pasep was made available links to the Operations Guarantee Fund – FGO, which facilitated access to credit by micro and small companies, seeing that the providing of guarantees constitutes one of the main barriers in the taking out of loans, while enabling there to be a reduction in financial charges. 147,741 3,617  X  
FAT Giro Setorial (FAT sector working capital)  in 2010, the FAT Giro Setorial credit line had the objective of stimulating the generation of jobs and incomes through financial support to companies that operate in the bar and restaurant segment, duly registered with the Ministry of Tourism, a labour-intensive sector with a geographical dispersion covering all areas of the Country. 950 91   X
Proger Urbano Investimento (investment) Introduced by the Ministry of Labour and Employment and by the Deliberative Council of the Worker Support Fund (CODEFAT) at the beginning of 1994, Proger has the aim of promoting initiatives focused on the generation of jobs and incomes, to the granting of special lines of credit to sectors which usually have little access to the financial system, such as micro and small business, cooperatives and production associations and own production initiatives in the informal economy. 23,317 4,586   X


Credit for Agribusiness



Agribusiness is one of the main sectors of the Brazilian economy, being of fundamental importance to the country's growth. Banco do Brasil, in its role as an agent for public policies, represents a link between the Government and the rural producer, acting as the largest provider of finance in the Brazilian agribusiness sector in all segments and at all stages of the production chain, from the small producer to large agroindustrial companies.

It is worth pointing out that in the financing animal breeding activities, BB observes the Federal and State environmental regulations in force, requiring the presentation of documents that proves that the producer's situation is legal and regular, in terms of environmental licensing, grants for the use of water and registration of legal reserve. These documents of proof must be maintained in the dossiers of the proponents, for verification and monitoring by the internal control area of the Bank, and the banking supervisory bodies.

Agribusiness Loan Portfolio(1)

(R$ billion)


(1) Since 2009, contains the portfolios of BV and BNC.

Prior to the contracting of rural credit operations, environmental and social requirements of the client and the enterprise being financed are observed, to make sure that they are in order. The target public of rural credit carries out investment, funding and sales operations. Financing for funding and sales involve short-term operations, which in general, take place as least once during the harvest year. This characteristic provides an opportunity for periodic monitoring of the client and its activity. Rural credit operations are subject to inspection in loco, on which occasion are verified aspects related to: correct application of credit, guarantee situation of the undertaking and of the management of the client. The result of the inspection is written down in standardised form, and sent to the branch carrying out the operation. The procedure, in cases of nonconformity being observed, begins with notification of the client and a request to put matters in order, and can result in a demand for the loan to be paid back early, as set out in the relevant clause contained in the credit instrument.

In 2010, Banco do Brasil maintained its position as the principal partner of Brazilian agribusiness. The agribusiness portfolio ended the year with a balance of R$75.0 billion in rural and agro-industrial credit operations, which represents an increase of 12.9% compared to the same period a year earlier, and a market share of 61%.


Agribusiness Loan Portfolio: by Purpose, Region and Client Size



Agribusiness Loan Portfolio by purpose

 

Agribusiness Loan Portfolio by region

     
 

Regional Participation


   

Credit Portfolio by Size of Client

(R$ billion)

Segment

Dec/09

Dec/10

Mini

11.3

5.3

Small

10.7

16.2

Medium and large

41.0

50.3

Cooperatives

2.8

3.2

BNC

0.8

                -

Total

66.4

75.0



Risk Management

In the contracting of rural credit operations of particular note is the use of mechanisms for risk mitigation – bad weather and prices. At the end of 2010, 55.1% of agricultural costs operations were covered by production insurance (proagro or agricultural insurance) and 6.1% covered by price insurance (option contracts).

Rural Credit with a Socio environmental Focus


To encourage good practices by rural producers, BB offers a series of credit lines with a socio-environmental focus for animal breeding, forestry and reforestry, agro-ecology, organic production, revitalization of degraded areas, production and absorption of greenhouse gases and low carbon projects, supported by the Program for Low Carbon Agriculture (ABC), undergoing implementation, such as BNDES Produsa, FCO Pronatureza, BNDES Propflora, Pronaf Florestal, Pronaf Agroecologia and Pronaf ECO. In 2010, the volume contracted under these credit lines amounted to R$195.6 million.


Products with Socio-environmental Characteristics
EC4 | FS7 | FS8

Product or Service Socio-environmental Responsibility Characteristic Quantity of Granted Transactions Total Portfolio
(R$ thousands)
Characteristics of Products
Environmental Social
BB Florestal – FCO Pronatureza FCO Pronatureza (for nature):

a) incentivates projects which are aimed at the conservation and protection of environment, the revitalization of degraded or altered areas, and the development of sustainable activities;
b) to support the adaptation of production processes to technologies appropriate to the environmental conditions of the region;
c) to incentivate the revitalization of areas of legal reserve, vegetation on the edge of water courses and preservation of the environment ;
d) to provide conditions for expansion of organic activity;
e) to incentivate the introduction of forestry undertakings, with a focus on the generation of jobs and incomes;
f) to also support the implementation of projects which involve carbon sequestration and the reduction of greenhouse gases.
163 293,220 X  
BB Florestal – BNDES Propflora I. to contribute to the reduction in the existing deficit of tree plantations used as raw material for industries, mainly the furniture industry;
II. To increase the diversification of production activities in the rural context;
III. To generate jobs and incomes in a decentralized manner;
IV. To leverage the technological and commercial development of the sector, as well as the collection of taxes;
a) Social: to encourage people to stay in the rural environment, and reduce migration to the cities, by making small and medium sized properties economically viable;
b) Environmental: to contribute to the preservation of native forest and remaining ecosystems.
195 97,449 X  
BB Florestal – Pronaf Florestal Investment in projects which fill the requirements defined by the Secretariat for Family Farming/MDA, for:

a) Agroforestry systems;
b) Extraction activities that are ecological sustainable, forestry management and planning, including costs related to the introduction and maintenance of the undertaking;
c) Reconstitution and maintenance of permanent preservation areas and legal reserves, and the revitalization of degraded areas, for the fulfilment of the environmental legislation;
d) enrichment of areas that already have diversified forestry coverage, with the planting of one or more forestry species that are native of the bioma.
489 62,522 X  
BNDES Produsa Program for the stimulation of sustainable animal breeding – Produsa, is a credit line, with funding from the BNDES, which incorporated the former Program for the Integration of Farming – Animal Breeding – Prolapec and items of the Program for the Modernization of Agriculture and the Conservation of Natural Resources – Moderagro related to the correction and conservation of soil, the revitalization of pastures and actions related to environmental preservation:

a) to disseminate the concept of responsible and sustainable agribusiness, adding the characteristics of efficiency, good production practices, social responsibility and environmental preservation;
b) to stimulate environmental sustainability actions in the agribusiness context;
c) to stimulate the revitalization of degraded production areas, including pasture, in order to increase animal breeding productivity on a sustainable basis;
d) to support actions for the regularization of rural properties with respect to the environmental legislation (legal reserve, permanent preservation areas, treatment of defecations and residues, among others);
e) to reduce the pressure for deforestation of new areas, with a view to increasing animal breeding activities in degraded areas which are undergoing the revitalization process;
f) to guarantee conditions for the rational and sustainable use of agricultural areas and pasture, and reducing environmental problems;
g) to intensify the support for the implementation of sustainable production systems, such as the organic system for animal breeding production.
706 173,175 X  
Pronaf National Program for the Strengthening of Family Farming, created in 1995 by the Federal Government, is for the financial support of animal breeding and farming activities carried out with the direct employment of the labour force of farming families. It has the object of strengthening the activities of the family farmer, integrating him into the agribusiness chain, increasing incomes and adding value to the product and the property, through:

a) Professionalization of the producers and families;
b) Modernization of the production system;
c) Appreciation of the rural family producer.
723,499 17,680,585 X  
BNDES/Moderagro Program for the Modernization of Agriculture and Conservation of Natural Resources – Moderagro is a fixed credit line, aimed at animal breeding investments with funds from the BNDES through:

a) to support the development of the production of types of fruit with market potential vote in Brazil and abroad particularly in the context of the Program for Integrated Fruit Production (PIF Brasil), as well as the processing, industrialization, standardization and other investments needed to improve standards of quality and conditions of sale of fruit products (Moderagro Fruta);

b) to stimulate the sectors a lot of areas of agribusiness and animal defence, particularly under the National Program for the Control and Eradication of Brucelosis and Tuberculosis (PNCEBT) and the implementation of cattle and buffalo (Moderagro development and animal defence), as well as projects for sanitation or environmental improvement, related to the activities covered by this Program.
373 727,407    
 Agribusiness Ourocard Allow holders of this card to access its previously contracted rural credit lines (funding and investment). Payment is made directly to the supply included in the agreement, so as to guarantee the correct application of these funds. 110,000 cartões emitidos      



National Program for the Strengthening of Family Farming (Pronaf)


To change the social and economic reality of the small rural producer, inserting him into a context with greater use of technology and better financial and commercial management is a great challenge for any country, and Brazil deals with this through its National Program for the Strengthening of Family Farming – Pronaf. This program provides financing at terms and rates that are appropriate to the producer, in an environment of protection against climactic risks and sales based on encouragement to form associations and the use of technical assistance.

As the executor of public policies with a sustainable development profile, Banco do Brasil is the main financial agent of the National Program for the Strengthening of Family Farming (Pronaf), a Federal Government initiative that has the objective of developing family farmers and allowing the granting of credits at appropriate rates and under appropriate terms.

The great contribution by BB to Pronaf is the use of all its tradition, operational capacity and banking knowledge in rural credit for the building of automated and mass credit solutions, allowing the contracting of more than 1 million transaction a year, with R$5 billion in loans granted.


The charts below show the substantial progress in BB's participation in Pronaf:


Loans Contracted – Harvest Year

(R$ billion)



Portfolio Balance – Year

(R$ billion)

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