SALTILLO, COAHUILA.- In an investigation published this week, the Reporter Brazil association points out that John Deere and the Brazilian Development Bank (BNDES) would have financed material worth 5.4 million dollars for five farms seized for illegal deforestation.
The authors recall that “a resolution of the Brazilian central bank prevents embargoed farms from accessing credits, but a regulatory loophole authorizes their owners to benefit from those credits for other farms.” According to the investigation, two owners would have even obtained material for repossessed farms.
Guaranteed by the John Deere bank, the investment loans granted by the BNDES allow access to funds at an interest of between 0.95% and 1.15%.
According to Reporter Brazil, more than eleven owners who add about 6 million dollars in unpaid environmental fines would have benefited from 7.6 million dollars in loans thanks to this system.
The authors recall that Brazil is the second world market for John Deere, behind the United States.
In response to journalists, the bank has indicated that it “rigorously respects all relevant regulations and standards” on credits and has recalled that, by acquiring the material, the beneficiaries “assume all legal responsibility for the equipment.”