Brazil’s National Monetary Council (CMN) has officially approved the regulatory framework for the country’s massive rural debt renegotiation program under Provisional Measure (MP) 1.376/2026. The Ministry of Finance estimates that the measure could cover over R$100 billion ($17.8 billion) in outstanding operations for agricultural producers and cooperatives that suffered severe losses between 2019 and 2025. While the program offers a critical liquidity lifeline for distressed farmers ahead of the next planting season, the regulation shifts the entire credit risk onto financial institutions, presenting a fresh headwind for major Brazilian lenders.