Rural aims for 30% loan growth next yr

Brazilian bank Rural is aims to grow lending to small-and medium-sized enterprises 30% next year, compared to 2003, the bank's COO Jose Roberto Salgado was quoted by local financial daily Gazeta Mercantil as saying. This year the bank expects to lend 3.5bn reais (US$1.2bn), up 20% from 2002. Salgado said Rural originally projected loan growth of 30% this year, but the economy only started to recovery in October and therefore growth will be lower than first expected. Rural is investing in agro industry because it will be the "driver" of Brazil's economic growth, Salgado said, adding that this sector represents 40% of the bank's loan book. In April the bank launched a unit called Rural Trading that offers small-and medium-sized exporters financing and commercial advisory. Salgado believes Rural Trading will see its business volume jump from US$30mn this year to US$200mn next year. The bank also plans to increase its four mini-branches at non-banking institutions to 20 by April next year to improve its distribution capacity to agro industry, he said. Last year saw Rural debut on the international capital markets with a one-year US$50mn issue. The bank has a bond program worth US$500mn and next year Salgado expects Rural to return to the international markets with "longer terms and more attractive interest rates." Banco Rural is a bank that focuses on serving small-and medium-sized enterprises.