From the Newsroom
São Paulo- The 2004/05 Agricultural and Livestock plan, to be released in the first half of this year, should contain two new instruments for capitalization of Brazilian livestock: private investment funds in agribusiness and agricultural letters of trade, issued by private companies on the international market.
"We are discussing these two proposals with the economic department," informed the Agriculture, Livestock, and Supply Ministry agricultural policy secretary, Ivan Wedekin, today, when commenting the need to attract foreign funds for primary production. Wedekin explained that private investment funds in agribusiness should be registered in the Securities Exchange Commission (CVM). Technicians from the Agriculture and Finance Ministries have already been to the CVM, in Rio de Janeiro, to discuss the matter.
According to the secretary, the funds would make it possible to create agricultural companies that would sell quotas to Brazilian and foreign investors.
"Brazilian agribusiness needs greater integration with the capital market."
Brazilian private agribusiness notes should have their reserves in agricultural products, stated Wedekin.
"These notes would be issued abroad by companies and cooperatives," said the agricultural policy secretary, while defending the adoption of new credit instruments for greater investment in the sector, in which Brazil is currently one of the most competitive countries.
According to Wedekin, the government has been working on a scenery with dropping interest rates. This, emphasized the secretary, will make it possible to release investment funds and private Brazilian agribusiness letters and notes.
