CMN Resolution No. 4,987 — Establishes Emergency Rural Credit Line and Authorizes Renegotiation of Rural Credit Operations for Farmers Affected by Excessive Rainfall

Resolution No. 4,987

CMN RESOLUTION NO. 4,987, OF MARCH 8, 2022

Establishes an emergency rural credit line and authorizes the renegotiation of operating and investment rural credit operations for family farmers and rural producers whose enterprises were harmed by excessive rainfall and its consequences in municipalities within the area of operation of the Superintendency for the Development of the Northeast (Sudene) with a declaration of emergency or state of public calamity recognized by the Federal Executive Power.

The Central Bank of Brazil, in accordance with Art. 9 of Law No. 4,595, of December 31, 1964, makes it known that the Monetary Council, in an extraordinary session held on March 8, 2022, taking into account the provisions of Art. 4, item VI, of Law No. 4,595, of 1964, of § 1 of Art. 15 of Law No. 7,827, of September 27, 1989, of § 4 of Art. 8-A of Law No. 10,177, of January 12, 2001, and of Art. 1 of Decree No. 7,728, of May 24, 2012,

R E S O L V E D:

Art. 1. An emergency rural credit line is established with resources from the Northeast Constitutional Financing Fund (FNE) intended for family farmers and rural producers who suffered losses in agricultural and livestock income due to flooding, flash floods, waterlogging, or local storms – intense rains occurring in the period from November 1, 2021, to July 31, 2022, in municipalities within the area of operation of the Superintendency for the Development of the Northeast (Sudene), with a declaration of emergency or state of public calamity recognized by the Federal Executive Power, observing the provisions applicable to operations of this Fund that do not conflict with the provisions of this article: (Redacted by CMN Resolution No. 5,035, of 7/26/2022.)

I - beneficiaries:

a) family farmers enrolled in the National Program for Strengthening Family Agriculture (Pronaf); and

b) other rural producers;

II - objectives: promote the recovery or preservation of agricultural and livestock activities developed by the rural producer beneficiaries of this credit line;

III - purposes:

a) family farmers enrolled in Group “B” of Pronaf: credit for investment, with mandatory use of the methodology of the National Program for Guided Productive Microcredit (PNMPO); and

b) other family farmers and rural producers: credit for investment, including associated operating credit, and credit for operating, prohibiting the isolated acquisition of animals;

IV - credit limit per beneficiary:

a) family farmers enrolled in Group “B” of Pronaf: up to R$6,000.00 (six thousand reais);

b) other family farmers: up to R$20,000.00 (twenty thousand reais), considering the sum of operating and investment operations; and

c) other rural producers: up to R$300,000.00 (three hundred thousand reais), with up to R$100,000.00 (one hundred thousand reais) for operating and up to R$200,000.00 (two hundred thousand reais) for investment;

V - financial charges:

a) family farmers enrolled in Group “B” of Pronaf: effective interest rate of 0.5% p.a. (five tenths percent per year);

b) other family farmers, mini and small rural producers: effective interest rate of 3.5% p.a. (three and five tenths percent per year); and

c) other rural producers: effective interest rate of 5% p.a. (five percent per year);

VI - repayment:

a) operating: up to 5 (five) years, including up to 12 (twelve) months of grace period;

b) investment:

1. for family farmers enrolled in Group “B” of Pronaf: up to 5 (five) years, including up to 12 (twelve) months of grace period;

2. for other family farmers, mini and small rural producers: up to 10 (ten) years, including up to 2 (two) years of grace period; and

3. for other rural producers: up to 8 (eight) years, including up to 2 (two) years of grace period;

VII - guarantees: at the free discretion of the parties; and

VIII - deadline for contracting: until November 30, 2022. (Redacted by CMN Resolution No. 5,035, of 7/26/2022.)

§ 1. Up to 20% (twenty percent) of the value of the operating rural credit for the family farmers referred to in item “a” of item I of the main text may be destined for family maintenance, in the form of item 8 of Section 4 (Operating Credits) of Chapter 10 (National Program for Strengthening Family Agriculture - Pronaf) of the Rural Credit Manual (MCR).

§ 2. The operating rural credit operations contracted under this line by the family farmers referred to in item “a” of item I of the main text are entitled to an adherence bonus of 20% (twenty percent) on each installment paid in full by the due date.

§ 3. The contracting of the credit line referred to in this article is conditioned on proof of income loss by the borrower due to adverse weather events in the period referred to in the main text, attested by the lending financial institution.

Art. 2. The renegotiation of operating rural credit operations and installments of rural investment, in a compliant status on November 30, 2021, due and payable in the period from December 1, 2021, to December 30, 2022, contracted with FNE resources, whose financed enterprises suffered losses due to flooding, flash floods, waterlogging, or local storms – intense rains in the period from November 1, 2021, to July 31, 2022, in municipalities within the area of operation of Sudene, with a declaration of emergency or state of public calamity recognized by the Federal Executive Power, maintaining the contractual conditions and observing the following specific conditions: (Redacted by CMN Resolution No. 5,035, of 7/26/2022.)

I - repayment:

a) operating credit extended by authorization of the Monetary Council and investment: up to 100% (one hundred percent) of the value of the installments due by the borrower in the period from December 1, 2021, to December 30, 2022 may be extended for up to 1 (one) year after the end of the current contract; and

b) operating credit: up to 100% (one hundred percent) of the value due by the borrower in the period from December 1, 2021, to December 30, 2022 may be renegotiated for payment in up to 5 (five) years, including up to 12 (twelve) months of grace period;

II - financial charges: the outstanding balance of operations in default in the period from December 1, 2021, until 30 days after the date of publication of this Resolution must be updated by the financial charges for the normal situation contained in the current credit instrument;

III - operations of rural operating credit with coverage of the Agricultural Activity Guarantee Program (Proagro) or rural insurance may be covered by the renegotiation referred to in this article, excluding the value related to the received coverage;

IV - formalization of renegotiation: until December 30, 2022.

Sole Paragraph. The renegotiation of debts referred to in this article is conditioned on proof of temporary repayment difficulty by the borrower due to the adverse weather events referred to in the main text, attested by the lending financial institution.

Art. 3. This Resolution enters into force on the date of its publication.

Roberto de Oliveira Campos Neto

President of the Central Bank of Brazil