# Banco do Brasil flags default as rural producers reject renegotiation

> Rural producers in Brazil's Central-West refuse debt renegotiation, pushing Banco do Brasil toward default.
- Title: Banco do Brasil flags default as rural producers reject…
- Summary: Rural producers in Brazil's Central-West refuse debt renegotiation, pushing Banco do Brasil toward default.
- Keywords: banco do brasil, agribusiness, default, credit, central-west, soybean, corn, livestock, debt renegotiation, moral hazard, brazil, Agência Brasil
- Source: Agência Brasil — https://agenciabrasil.ebc.com.br/en/economia/noticia/2026-11/banco-do-brasil-flags-default-rural-producers-reject-renegotiation
- Published: 2026-11-13T16:47:00+00:00
- Read time: 1 min
- Topics: banco do brasil, agribusiness, default, credit, central-west, soybean, corn, livestock, debt renegotiation, moral hazard, brazil, news
## Banco do Brasil reports default risk
State-controlled Banco do Brasil President Tarciana Medeiros stated Thursday that medium- and large-scale rural producers refused to pay debts or renegotiate loans.

> We didn’t anticipate the persistence and intentional nature of moral hazard
## Default cases concentrated in Central-West
Default cases are mostly among medium- and large-scale producers in Brazil’s Central-West region involved in soybean and corn cultivation and livestock farming.
## Default rates rising
The default rate for loans over 90 days past due stood at 6.92 percent in September 2.026 compared to 4.84 percent in September 2025.
## 90% of borrowers stay on track
About 90 percent of agribusiness borrowers continue to make payments on time despite worsening portfolio conditions.
## Banco do Brasil revises income forecast
Banco do Brasil revised its adjusted net income forecast for 2026 from BRL 18 billion to BRL 22 billion to BRL 9 billion to BRL 11 billion.
## Only 15% accept renegotiation terms
Only 15 percent of defaulting borrowers accepted the bank’s debt renegotiation terms despite BRL 13.4 billion in agribusiness debt being renegotiated.
## Key takeaway

Banco do Brasil reports 90% of agribusiness borrowers stay on track despite rising default rates among medium-large producers.