CMN Resolution No. 4908 Authorizes Extension of Installments for FNO, FNE, and FCO Financing

Resolution No. 4,908

CMN RESOLUTION NO.
4,908, OF APRIL 29, 2021

Authorizes the extension of installments for financing carried out with resources from the Constitutional Financing Fund of the North (FNO), the Constitutional Financing Fund of the Northeast (FNE), and the Constitutional Financing Fund of the Center-West (FCO) to meet the sectors and activities most affected by the Covid-19 pandemic.

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 29, 2021, considering the provisions of Article 4, items VI and VIII, of the aforementioned Law, and Article 15, paragraph 1, of Law No. 7,827, of September 27, 1989,

R E S O
L V E U:

Art. 1. Financial institutions administering the Constitutional Financing Fund of the North (FNO), the Constitutional Financing Fund of the Northeast (FNE), and the Constitutional Financing Fund of the Center-West (FCO) are authorized to extend by up to twelve months the installments due between January 1, 2021, and December 31, 2021, both past due and future, of non-rural credit operations contracted with resources from these funds until December 31, 2020, by borrowers whose activity has been prejudiced as a result of social distancing measures adopted to mitigate the impacts of the pandemic caused by Covid-19, maintaining the other contractual conditions.

Sole paragraph. The extension referred to in this article is admitted for borrowers who have operations contracted with resources from the FNO, FNE, or FCO in a state of default until December 31, 2020, provided they regularize this situation by the date of the extension.

Art. 2. Financial institutions administering the FNO, FNE, and FCO are authorized to extend until December 31, 2021, the due date of installments due between January 1, 2020, and December 31, 2021, both past due and future, of rural credit operations contracted with resources from the FNO, FNE, and FCO until December 31, 2020, by mini and small rural producers, including family farmers, whose activity has been prejudiced as a result of social distancing measures adopted to mitigate the impacts of the pandemic caused by Covid-19, maintaining the other contractual conditions.

Sole paragraph. The extension referred to in this article is admitted for borrowers who have rural credit operations contracted with resources from the FNO, FNE, or FCO in a state of default until December 31, 2019, provided they regularize this situation by the date of the extension.

Art. 3. For the purposes of the extension provided for in this Resolution, it is incumbent upon the financial institution to attest to the temporary difficulty in repaying the credit by the borrower referred to in Art. 1 or by the mini or small rural producer referred to in Art. 2.

Art. 4. Financial institutions administering the FNO, FNE, and FCO must send to the Ministry of Regional Development, by February 28, 2023, an analytical comparison between the delinquency observed after the full execution of the provisions of this Resolution and what was expected in terms of delinquency by the financial institution if there had been no possibility of extension provided for in this Resolution, segregating the group benefited by the extension by size and sector.

Art. 5. This Resolution enters into force on May 1, 2021.

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