CMN Resolution No. 3496 — Provides for the granting of discounts and the extension of investment installments due in 2007

RESOLUTION NO. 003496

Provides for the granting of discounts and for the extension of investment installments due in 2007.

The CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the MONETARY COUNCIL, in a session held on August 29, 2007, based on Article 1 of Law No. 8,427, of May 27, 1992, and considering the provisions of Articles 4, item VI, of said Law No. 4,595, of 1964, 4 and 14 of Law No. 4,829, of November 5, 1965, 5 of Law No. 10,186, of February 11, 2001, and 6 of Decree No. 6,201, of August 28, 2007,

RESOLVES:

Article 1. Financial institutions, in accordance with Decree No. 6,201, of August 28, 2007, are authorized, for agricultural investment credits that have installments due until December 31, 2006 in a state of compliance, to:

I - grant a 10% (ten percent) discount on installments due in 2007 of rural investment financing contracted with resources from the Worker Protection Fund (FAT) and the National Bank for Economic and Social Development (BNDES), within the scope of the Agricultural Tractor Fleet Modernization Program and Associated Equipment and Combines (Moderfrota), the Cooperative Development Program for Value Addition to Agricultural Production (Prodecoop), and Special Agricultural Finame, which are settled by the due date of each installment, considering the extension of time authorized by the Monetary Council, provided that the financing was contracted cumulatively:

a) until June 30, 2006, or on a subsequent date with the charges established for the 2005/2006 harvest;

b) with interest rates higher than 8.75% a.a. (eight and seventy-five hundredths percent per year);

II - for operations that meet the conditions established in item I, whose borrowers have their main income originating from the production of cotton, rice, corn, soy, sorghum, or wheat:

a) grant a 15% (fifteen percent) discount, in substitution for that provided in item I, on the value of said installments, provided that the borrower pays, by the due date of each installment, considering the extension of time authorized by the Monetary Council, at least 15% (fifteen percent) of the value of the installments;

b) extend, for up to one year after the due date of the last contracted installment, up to 70% (seventy percent) of the value of installments due in 2007;

III - for financing granted within the scope of the Agricultural Modernization and Natural Resource Conservation Program (Moderagro), Irrigation and Storage Incentive Program (Moderinfra), Fruit Growing Development Program (Prodefruta), Agribusiness Development Program (Prodeagro), Commercial Planting and Forest Recovery Program (Propflora), Rural Employment and Income Generation Program (Proger Rural), and Moderfrota, the latter in operations contracted with interest rates of 8.75% a.a. (eight and seventy-five hundredths percent per year), whose borrowers have their main income originating from the production of cotton, rice, corn, soy, sorghum, or wheat:

a) grant a 5% (five percent) discount on the value of installments due in 2007, provided that the borrower pays, by the due date of each installment, considering the extension of time authorized by the Monetary Council, at least 15% (fifteen percent) of the value of the installments;

b) extend, for up to one year after the due date of the last installment, up to 80% (eighty percent) of the value of installments due in 2007.

Sole Paragraph. In the event of extension of installments beyond the limits established, borrowers will not be entitled to the discounts defined in this article.

Article 2. For rural investment operations backed by resources from the Constitutional Financing Funds of the North (FNO), Northeast (FNE), and Center-West (FCO), whose borrowers have installments due until December 31, 2006 in a state of compliance and have their main income originating from the production of cotton, rice, corn, soy, sorghum, or wheat, it is authorized to extend, for up to one year after the due date of the last installment, up to 80% (eighty percent) of the value of installments due in 2007, provided that the borrower pays, by the due date of each installment, considering the extension of time authorized by the Monetary Council, at least 20% (twenty percent) of the value of the installments.

§ 1. The provisions of the caput do not apply to financing granted to beneficiaries of the National Program for Strengthening Family Agriculture (Pronaf).

§ 2. Financial agents must adopt the procedures deemed necessary regarding this source of resources.

Article 3. For borrowers of the financing referred to in Article 1 who settled installments due in 2007 before the date of entry into force of this resolution, provided that the operations still show a debtor balance, the respective discount will be calculated on the nominal value of the settled installments and granted through a reduction in the debtor balance of the operation.

Sole Paragraph. The discount is limited to the value of the debtor balance of the operation.

Article 4. Based on case-by-case analysis and provided that the borrower proves inability to pay the minimum percentages required under Articles 1 and 2, financial agents may extend up to 100% (one hundred percent) of installments due in 2007, respecting, in each program existing within the financial agent, the limit:

I - of 30% (thirty percent) of the sum of installments due in 2007, for operations of borrowers from the Center-West Region;

II - of 10% (ten percent) of the sum of installments due in 2007, for operations of borrowers from other regions;

III - established in items I and II, as applicable, for operations backed by resources from FNO, FNE, and FCO.

Article 5. Investment operations backed by resources from the exigibility on demand deposits (MCR 6-2) and rural savings (MCR 6-4) may be included in the extensions provided for in Article 1, items II and III, letter "b", at the discretion of the financial institution, with any possibility of equalization of financial charges by the National Treasury being excluded.

Article 6. Borrowers who extend, partially or totally, installments due in 2007 of the financing referred to in this resolution may only qualify for new investment credits with rural credit resources after they fully settle, by the due date of each installment, the installments due in 2008, except for cases of swine producers and their cooperatives in the State of Santa Catarina affected by the incidence of foot-and-mouth disease.

Article 7. The costs resulting from the granting of discounts and the extension of the remaining obligation, referred to in Articles 1 to 4, will be assumed:

I - by BNDES, in operations backed by the Special Agricultural Finame credit line;

II - by FNO, FNE, or FCO, in operations backed by their resources, with each responsible for the burdens related to its portfolio;

III - by the National Treasury, in other cases, limited to the budgetary allocation and financial availability destined for the purpose and observing the provisions of Law No. 8,427, of May 27, 1992, which governs the granting of economic subsidies in rural credit operations.

Article 8. In the extensions referred to in this resolution, the provisions of Resolution No. 2,682, of December 21, 1999, regarding the classification of operations, must be observed.

Article 9. This resolution enters into force on the date of its publication.

Brasília, August 30, 2007.

Alexandre Antonio Tombini
President, substitute