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Brazil is one of the most interesting emerging market destinations for private equity (PE) funds, thanks to years of political and economic stability and the drive provided by a middle class that has grown sharply with the help of a series of social programs. This prosperity has produced a relative increase in consumption in practically all sectors of the economy, as well as producing business op... view more
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The deteriorating external economic environment, volatility in financial markets and uncertainty about how deep the crisis really is in Europe, coupled with the outlook for the United States, have combined to produce a rather gloomy picture for Latin America's banking systems in 2012. However, banks in the region have generally proven to be much more robust than we have been accustomed to seeing in the past.
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In 2009, 14 per cent of total global agricultural exports came from Latin America, clearly reflecting the leading role that Latin America plays in the global trade of agricultural products. Banks have historically been reluctant to finance agriculture due to the inherent risks. But that is all changing. In this report, BNamericas looks into the factors which are allowing for a more traditional banking approach in the agricultural sector, especially in Brazil and Argentina.
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