CMN Resolution No. 4,905 — Establishes Criteria for Rural Credit Debt Extension by Financial Institutions

Resolution No. 4,905

The current text of the MCR is available at the following electronic address: www3.bcb.gov.br/mcr.

CMN RESOLUTION NO. 4,905, OF APRIL 29, 2021

Amends Section 6 of Chapter 2 (Basic Conditions), Section 7 of Chapter 4 (Purposes and Special Instruments of Agricultural Policy), Section 2 of Chapter 9 (Fund for the Defense of the Coffee Economy - Funcafé), Section 1 of Chapter 10 (National Program for Strengthening Family Agriculture - Pronaf) and Section 1 of Chapter 11 (Programs with BNDES Resources) of the Rural Credit Manual (MCR), contained in the annexes to CMN Resolutions nos. 4,883, of December 23, 2020, 4,900, of March 25, 2021, and 4,889, of February 26, 2021, to establish criteria for the extension of rural credit debts by financial institutions.

The Central Bank of Brazil, under the terms of art. 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held on April 29, 2021, in accordance with arts. 4, item VI, of Law No. 4,595, of 1964, 4 and 14 of Law No. 4,829, of November 5, 1965, and 5 of Law No. 10,186, of February 12, 2001,

R E S O L V E D:

Art. 1 The Section 6 (Reimbursement) of Chapter 2 (Basic Conditions) of the Rural Credit Manual (MCR), contained in the annex to CMN Resolution No. 4,883, of December 23, 2020, shall enter into force with the following alteration:

“4 - The financial institution is authorized to extend the debt, at the same financial charges agreed upon in the credit instrument, provided that the borrower proves temporary difficulty in repaying the credit due to one or more of the situations below, and that the financial institution attests to the need for extension and demonstrates the borrower's repayment capacity:

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(NR)

Art. 2 Section 7 (Land Fund and More Agrarian Reform) of Chapter 4 (Purposes and Special Instruments of Agricultural Policy) of the MCR, contained in the annex to CMN Resolution No. 4,900, of March 25, 2021, shall enter into force with the following changes:

“12 - Financial institutions operating the FTRA are authorized, based on the conditions set forth in MCR 2-6-4, in cases where the borrower requests extension and demonstrates temporary difficulty in repaying the credit, to extend the installments of land credit operations with FTRA resources, including operations of the Terra Cédula Program formalized within the framework of Loan Agreement 4,147-BR, approved by Resolution of the Federal Senate No. 67, of July 22, 1997, with maturity in the civil year, respecting the limit per Federative Unit of 5% (five percent) of the value of the installments with maturity in the respective year, in each financial institution, and provided that the financial institution attests to the need for extension and demonstrates the borrower's repayment capacity, observing the following conditions:

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d) the borrower's request for extension must be accompanied by technical information that allows financial institutions to verify the triggering event of the temporary difficulty in repaying the credit, its intensity, and the percentage of income reduction caused, through a form to be made available by the FTRA managing body;

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(NR)

Art. 3 Section 2 (Working Capital Credit) of Chapter 9 (Fund for the Defense of the Coffee Economy - Funcafé) of the MCR, contained in the annex to CMN Resolution No. 4,889, of February 26, 2021, shall enter into force with the following changes:

“4 - The financial institution, at its discretion and in cases where temporary difficulty in repaying the credit is proven due to the situations provided for in MCR 2-6-4, may renegotiate the installments of working capital credit operations contracted with resources transferred by Funcafé, with maturity in the civil year, provided that the limit of 8% (eight percent) of the value of the installments of these operations with maturity in the respective year is respected, in each financial institution, and that the financial institution attests to the need for extension and demonstrates the borrower's repayment capacity, observing the following conditions:

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f) the borrower's renegotiation request must be accompanied by technical information that allows the financial institution to prove the triggering event of the temporary difficulty in repaying the credit, its intensity, and the percentage of income reduction resulting;

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(NR)

Art. 4 Section 1 (General Provisions) of Chapter 10 (National Program for Strengthening Family Agriculture - Pronaf) of the MCR, contained in the annex to CMN Resolution No. 4,889, of 2021, shall enter into force with the following changes:

“25 - The financial institution, at its discretion and in cases where temporary difficulty in repaying the credit is proven due to the situations provided for in MCR 2-6-4, may renegotiate the operations contracted under the auspices of Pronaf, provided that the financial institution attests to the need for extension and demonstrates the borrower's repayment capacity, observing the following specific conditions:

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(NR)

“27 -
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d) the renegotiation request must be accompanied by technical information that allows the financial institution to prove the situation that generated the temporary difficulty in repaying the credit, its intensity, the percentage of income reduction caused, and the estimated time for income to return to the level provided for in the credit project, observed that:

I - when the same triggering situation for temporary difficulty in repaying credit affects more than 30 (thirty) family farmers from the same municipality, the report or document with the information referred to in this item may be group-based;

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(NR)

Art. 5 Section 1 (General Provisions) of Chapter 11 (Programs with BNDES Resources) of the MCR, contained in the annex to Resolution No. 4,889, of 2021, shall enter into force with the following changes:

“4 - The financial institution, at its discretion and in cases where temporary difficulty in repaying the credit is proven due to the situations provided for in MCR 2-6-4, may renegotiate the installments of rural investment credit operations contracted with BNDES resources and subsidized by the National Treasury, with maturity in the civil year, provided that the financial institution attests to the need for extension and demonstrates the borrower's repayment capacity, observing the following conditions:

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i) the borrower's renegotiation request must be accompanied by technical information that allows the financial institution to prove the triggering event of the temporary difficulty in repaying the credit, its intensity, and the percentage of income reduction resulting.” (NR)

Art. 6 The following provisions of the MCR, contained in the annex to CMN Resolution No. 4,889, of 2021, are hereby repealed:

I - item 26 of Section 1 (General Provisions) of Chapter 10 (National Program for Strengthening Family Agriculture - Pronaf);

II - item 7 of Section 1 (General Provisions) of Chapter 11 (Program with BNDES Resources).

Art. 7 This Resolution enters into force on May 1, 2021.

Roberto de Oliveira Campos
Neto
President of the Central Bank of Brazil