CMN Resolution No. 4188 — Authorizes Renegotiation of Rural Credit Operations for Producers Affected by Drought in Sudene Area

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 February 28, 2013, based on the provisions of Articles 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,

RESOLVES:

Article 1. Financial institutions are authorized, for rural producers who suffered income losses due to drought affecting municipalities within the area of operation of the Superintendence for the Development of the Northeast (Sudene) with a declaration of emergency or public calamity state, after December 1, 2011, recognized by the Federal Government, to:

I - extend, until July 1, 2013, the maturity of overdue and future installments, between January 1, 2012 and June 30, 2013, of the following rural credit operations, in a state of compliance as of December 31, 2011, maintaining the financial charges agreed upon for the normal situation:

a) operating capital for the 2011/2012 and 2012/2013 harvests, contracted with Mandatory Resources (Rural Credit Manual – MCR 6-2), Rural Savings resources (MCR 6-4) with financial charge equalization by the Union, resources from the Constitutional Financing Funds, and under the National Program for Support to the Medium Rural Producer (Pronamp);

b) operating capital for harvests prior to the 2011/2012 harvest, extended by authorization of the National Monetary Council (CMN), including those contracted with resources from the Constitutional Financing Funds and under Pronamp, Proger Rural, or Proger Rural Familiar;

c) investment, contracted with Mandatory Resources (MCR 6-2), Rural Savings resources (MCR 6-4) with financial charge equalization by the Union, resources from the Constitutional Financing Funds, including those contracted under Pronamp, Proger Rural, or Proger Rural Familiar and the installments extended by CMN authorization;

d) investment, contracted under the Special Agricultural Finame Program or with resources transferred by the National Bank for Economic and Social Development (BNDES) with financial charge equalization by the Union, from programs coordinated by the Ministry of Agriculture, Livestock and Supply (Mapa), including the installments extended by CMN authorization;

II - for the rural producers referred to in this article who had a reduction of more than 30% (thirty percent) in income, who prove the inability to pay according to the assessment of financial institutions:

a) renegotiate, based on the conditions set out in MCR 2-6-9, the payment of the outstanding balance of the rural credit operations referred to in item “a” of item I of this article, for reimbursement in up to 5 (five) annual installments, with the maturity of the first installment fixed for up to 1 (one) year after the date of formalization of the renegotiation;

b) extend, based on the conditions of MCR 2-6-9, up to 100% (one hundred percent) of the installments of the operations covered by items “b” and “c” of item I of this article, for up to 1 (one) year, after the maturity of the last installment provided for in the contract;

c) renegotiate, based on the conditions of MCR 13-1-4, up to 100% (one hundred percent) of the principal installments of the operations covered by item “d” of item I of this article, by incorporating them into the outstanding balance and redistributing them into the remaining installments, or extension for up to 12 (twelve) months, after the date provided for the current maturity of the contract, with compliance with the requirements contained in MCR 13-1-4-“d” waived.

§ 1. For the purpose of granting the additional period provided for in item I of the main text of this article, the case-by-case analysis of proof of losses and the borrower's inability to pay, and compliance with the requirements of MCR 2-6-10-“a” and MCR 13-1-4-“b” and “d” are waived.

§ 2. The rural operating capital operations referred to in items “a” and “b” of item I of the main text of this article, covered by Proagro or another rural insurance modality, may only be extended and renegotiated in cases where there has been partial coverage, and the value related to the insurance indemnity must be excluded from the extension and renegotiation.

§ 3. The extensions or renegotiations referred to in item II of the main text of this article must be formalized by October 31, 2013.

§ 4. At the discretion of the financial institution, the substitution of a contractual addendum by a “text stamp” is admitted for the formalization of the extension and renegotiation referred to in this Resolution.

Article 2. In rural credit operations contracted with resources transferred by BNDES subject to classification under the provisions of this Resolution, the period of extension provided for in item I of Article 1 is until July 15, 2013, for overdue and future installments between January 1, 2012 and July 14, 2013;

Article 3. The summary and the main text of Article 1 of Resolution No. 4,082 of May 22, 2012, shall henceforth read as follows:

“Authorizes the renegotiation of rural credit operations for operating capital and investment for rural producers who suffered losses due to floods in the North region.” (NR)

“Article 1. Financial institutions are authorized, for rural producers who suffered income losses due to floods affecting municipalities in the North region, with a declaration of emergency or public calamity state after December 1, 2011, recognized by the Federal Government, to:” (NR)

Article 4. This Resolution enters into force on the date of its publication.

Alexandre Antonio Tombini
President of the Central Bank of Brazil