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Banco do Brasil to redirect 7B reais in credits from rural sector

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Banco do Brasil to redirect 7B reais in credits from rural sector

Banco do Brasil SA plans to redirect around 7.00 billion Brazilian reais in credits away from the rural sector to consumer and housing lending, the bank's vice-president of agribusiness, Tarcísio Hübner, told Reuters.

"We will have greater flexibility to serve segments that demand more credit, without compromising financing for agribusiness," Hübner reportedly told the newswire.

The news comes after Brazil's National Monetary Council, CMN, reduced the limit on resources financial institutions can dedicate to rural credit to 60% from 65% and increased the amount of rural savings deposits that can be allocated freely to 19% from 14%.

According to the Hübner, state-run Banco do Brasil has 92% of the country's rural credit in its portfolio and expanded its disbursements to agribusiness sector by 27% in 2017. He expects the bank to reach its goal of 103 billion reais in rural disbursements in 2017-2018, Reuters reported.

As of Dec. 1, US$1 was equivalent to 3.26 Brazilian reais.