CMN Resolution No. 4890 — Grants Additional Deadline for Reimbursement of Livestock Operating Credit for Retention of Dairy Cows and Authorizes FGPP Financing for Milk Processing

Resolution No. 4,890

CMN RESOLUTION NO. 4,890, OF FEBRUARY 26, 2021

Grants additional deadline for reimbursement of livestock operating credit for retention of dairy cows and authorizes the contracting of Financing for Price Guarantee to the Producer (FGPP), backed by Mandatory Resources, for the processing and industrialization of milk.

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes it public that the National Monetary Council, in a session held on February 25, 2021, considering the provisions of Article 4, item VI, of Law No. 4,595, of 1964, and Articles 4 and 14 of Law No. 4,829, of November 5, 1965,

RESOLVES:

Art. 1. The contracting of livestock operating credit with mandatory resources, with a repayment period of up to 2 (two) years, is admitted until June 30, 2021, when the resources are directed exclusively for the retention of dairy cows.

Art. 2. The contracting of Financing for Price Guarantee to the Producer (FGPP), with mandatory resources, for the processing or industrialization of milk, is admitted until June 30, 2021, observing the provisions in the Section Financing for Price Guarantee to the Producer of the Chapter Special Purposes of the Rural Credit Manual (MCR), and the following specific conditions:

I - credit limit: up to R$65,000,000.00 (sixty-five million reais) per beneficiary;

II - financial charges: effective interest rate of up to 6% p.a. (six percent per year); (Wording given by CMN Resolution No. 4,898, of 3/25/2021.)

III - repayment period: up to 240 (two hundred and forty) days;

IV - the beneficiary may use, for the purpose of proving the financed value, regardless of the number of operations carried out in the same financial institution, up to R$4,500,000.00 (four million and five hundred thousand reais) per producer, observing that:

a) the use of the same purchase invoice for the purpose of proving different operations in one or more financial institutions is prohibited;

b) the beneficiary must present to the financial institution a declaration that it has complied with the conditions established in this article, under the penalties of law;

c) the limit acquired by each rural producer for the purpose of the proof referred to in this item, and the limit per rural producer for the operations of Special Financing for Storage of Agricultural Products (FEE) and discount of Rural Bill of Exchange (DR) and Rural Promissory Note (NPR) backed by controlled resources, are independent of each other;

d) it is permitted that more than one beneficiary of the credit referred to in this article acquires the production of the same rural producer, observing the limit per producer referred to in this item.

Sole Paragraph. It is admitted that the average balances of the operations referred to in this article be used to comply with the Sub-exigibility Pronaf, as provided for in MCR 6-2-10, when contracted by cooperatives constituted by beneficiaries of the National Program for Strengthening Family Agriculture (Pronaf) who present a Declaration of Aptitude to Pronaf (DAP) as an active legal entity for this form of organization.

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