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Brazilian orange juice firm receives more financial aid

Friday December 11 2009
Volume: 37  Issue: 50

BRAZIL's National Development Bank, BNDES, is set to release a further BRL130 million (US$75 million) in working capital for Grupo Fischer, the controlling group of Citrosuco, one of Brazil's major orange juice producers.

The funds will be released from the bank's Special Credit Programme (PEC), which was set up in July by the federal government to help companies in need. The loan is expected to benefit Citrosuco's Bebedouro processing plant, which was forced to temporarily close its gates in February 2009 (FOODNEWS 13 February).

According to the PEC rules, Grupo Fischer will have 36 months to repay the loan, which comes with a 12-month grace period, according to Brazil's Agncia Estado agency. This new loan means that Citrosuco will receive a total of BRL333.49 million from BNDES in a space of just over two months. In October, Grupo Fischer announced the release of BRL203.49 million by BNDES for the renovation of Citrosuco's orange groves and the installation of irrigation systems (FOODNEWS 23 October).

Flvio Viegas, president of the Brazilian Association of Citrus Producers (Associtrus), said that the release of funds to Citrosuco "demonstrates the government's privileged treatment of the juice industry at the expense of citrus producers".

Crdito: Foodnews


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