Ethanol demand sees more loan investment in Brazil

Ethanol is set to benefit from a 46% rise in loans to sugarcane mills in Brazil this year.

Brazil’s state development bank is expecting to loan BR6 billion ($2.6 billion), which is up from BR4.1 billion in 2011.

Artur Yabe Milanez, biofuels manager within the Banco Nacional de Desenvolvimento Economico e Social, says it has been lowering rates on loans for cane mills as demand for ethanol is growing quicker than demand.

The bank cut its rates for planting sugar cane, via its Prorenova credit line, from around 6.3% to 5.5% at the end of July.