CMN Resolution No. 4070 — Authorizes Extension and Renegotiation of Credit Operations with BNDES Resources under the PSI Program for Rural Producers with Losses

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in a session held on April 26, 2012, considering the provisions of Article 4, item VI, of Law No. 4,595 of 1964, Articles 4 and 14 of Law No. 4,829 of November 5, 1965, and Article 5 of Law No. 10,186 of February 12, 2001,

R E S O L V E D:

Article 1. Financial institutions are authorized to renegotiate rural investment financing contracts entered into with resources transferred by the National Bank for Economic and Social Development (BNDES), under the Investment Support Program (PSI), operated with resources equalized by the National Treasury, as provided for in item "c" of item I of Article 1 of Resolution No. 3,759 of July 9, 2009, as amended by Resolution No. 3,789 of September 24, 2009, in the following manner:

I - for operations in a compliant status on December 31, 2011, whose borrowers suffered income losses due to the drought that affected municipalities in the South region, with a declaration of emergency or public calamity status after December 1, 2011, recognized by the Federal Government: extend, until September 15, 2012, the maturity of installments (principal and interest) due and future, between January 1, 2012, and September 14, 2012, maintaining the financial charges agreed upon for the normal situation, without requiring, for this purpose, a case-by-case analysis of proof of losses and the borrower's inability to pay;

II - for operations in a compliant status on January 31, 2012, whose borrowers suffered income losses due to the drought that affected municipalities in the Northeast region and the floods that affected municipalities in the North region, in both cases with a declaration of emergency or public calamity status after February 1, 2012, recognized by the Federal Government: extend, until December 15, 2012, the maturity of installments (principal and interest) due and future, between February 1, 2012, and December 14, 2012, maintaining the financial charges agreed upon for the normal situation, without requiring, for this purpose, a case-by-case analysis of proof of losses and the borrower's inability to pay;

III - for operations falling under items I and II, from rural producers who had a reduction in income greater than 30%, proven by a technical report: renegotiate up to 100% (one hundred percent) of principal installments due in 2012, by incorporating them into the outstanding balance and redistributing them into the remaining installments, which may be extended for up to 12 (twelve) months after the date scheduled for the current maturity of the contract.

§ 1. The borrower's renegotiation request must be accompanied by technical information that allows the financial institution to prove the triggering event of the inability to pay, its intensity, and the percentage of income reduction caused.

§ 2. The renegotiations referred to in item III of this article must be formalized:

I - by December 30, 2012, for operations contracted in the South region;

II - by February 28, 2013, for operations contracted in the Northeast and North regions.

Article 2. This Resolution enters into force on the date of its publication.

Alexandre Antonio Tombini
President of the Central Bank of Brazil