CMN Resolution No. 5029 — Authorizes FGPP Financing for Commercial Fishing and Aquiculture and Admits ABC and PCA Investment Operations for Mandatory Resources Compliance in 2022/2023

Resolution No. 5029

The current text of the MCR can be found at the following electronic address: www3.bcb.gov.br/mcr.

CMN RESOLUTION NO. 5,029, OF JUNE 29, 2022

Authorizes, exceptionally in the 2022/2023 agricultural year, the contracting of Producer Price Guarantee Financing (FGPP), backed by Mandatory Resources, for the commercialization of products from commercial capture fishing and aquaculture; and admits, exceptionally in the 2022/2023 agricultural year, that financial institutions fulfill up to 3.6% (three and six-tenths percent) of the rural credit requirement of Mandatory Resources (MCR 6-2) with investment operations within the scope of the Program for the Reduction of Greenhouse Gas Emissions in Agriculture (ABC Program), as provided for in MCR 11-7, and up to 2.4% (two and four-tenths percent) of the rural credit requirement of Mandatory Resources (MCR 6-2) with investment operations within the scope of the Program for the Construction and Expansion of Warehouses (PCA), as provided for in MCR 11-9.

The Central Bank of Brazil, in accordance with art. 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in an extraordinary session held on June 29, 2022, considering the provisions of art. 4, item VI, of Law No. 4,595, of 1964, and arts. 4, 14 and 21 of Law No. 4,829, of November 5, 1965,

R E S O L V E S:

Art. 1 Section 8 (Transitional Norms) of Chapter 4 (Purposes and Special Instruments of Agricultural Policy) of the Rural Credit Manual (MCR) shall be in effect with the following alterations:

“2 - Exceptionally, in the 2022/2023 agricultural year, the contracting of Producer Price Guarantee Financing (FGPP), backed by Mandatory Resources, for the commercialization of products from commercial capture fishing and aquaculture, must observe the provisions in the section of this manual that regulates FGPP and the following specific conditions:

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

b) reference price: those contained in the Fishing and Aquaculture Activity section of this manual;

c) repayment term: up to 240 (two hundred and forty) days;

d) for the purpose of proving the financed value, the following conditions must be observed:

I - regardless of the number of operations carried out, the values presented in the representative documents of expenses incurred by the borrower must observe the limit defined for the Special Financing for Storage of Agricultural and Livestock Products (FEE) and for the discount of Rural Bill of Exchange (DR) and Rural Promissory Note (NPR), per producer and financial institution;

II - the use of the same invoice for the acquisition of the product for the purpose of proving different operations in one or more financial institutions is prohibited;

III - the borrower must present to the financial institution a declaration that it has complied with the conditions established in this item;

IV - the acquired limit of each rural producer and the individual limit applicable to commercialization credits taken directly by the rural producer are independent of each other;

V - it is permitted for more than one borrower of the credit referred to in this item to acquire the production of the same rural producer, observing the limits per producer provided for the FEE and for the discount of DR and NPR.” (NR)

Art. 2 Section 8 (Transitional Norms) of Chapter 6 (Resources) of the MCR shall be in effect with the following alterations:

“7-A - Exceptionally in the 2022/2023 agricultural year, it is admitted that financial institutions contract rural investment credit operations with resources from the requirement of demand resources, as provided for in MCR 6-2, under the same conditions in effect for:

a) the Program for the Reduction of Greenhouse Gas Emissions in Agriculture (ABC Program), regulated in MCR 11-7; and

b) the Program for the Construction and Expansion of Warehouses (PCA), regulated in MCR 11-9.” (NR)

“8 - The average balances of the operations referred to in item “a” of item 7 and item “a” of item 7-A:

................................................................................................................” (NR)

“9 - The average balances of the operations referred to in item “b” of item 7 and item “b” of item 7-A:

................................................................................................................” (NR)

Art. 3 This Resolution enters into force on July 1, 2022.

Paulo Sérgio Neves de Souza
President of the Central Bank of Brazil, substitute