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Abstract

The purpose of this study is to empirically analyze how the asymmetry of information affects the market of rural credit of affiliates of Coamo (Toledo - PR). It is verified that the asymmetry affects the offer and the demand for credit. As to offer, the financial agent cannot grant credit to the interested borrowers because, given the lack of information, it can put at risk its loan portfolio. As to demand, the borrowers should be well informed on the terms of contracts or other documents they are signing, otherwise they can compromise their income/ capital due to a contractual misinformation. The level of asymmetry of information can be reduced by means of the adoption of strategies that strengthen the proximity between borrowers and lenders, what can reduce financing costs. This proximity - expressed in the form of better definition of guarantees by the lenders and of a closer follow-up of financed projects - it is an important aspect to reduce the risk of default in the sector.

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