CMN Resolution No. 5120 — Establishes Emergency Rural Credit Line for Livestock Operating Costs and Authorizes Renegotiation of Rural Credit Operations for Farmers Affected by Drought in the Northeast Region

CMN RESOLUTION NO. 5,120, OF FEBRUARY 7, 2024

Establishes an emergency line of rural credit for livestock operating costs and authorizes the renegotiation of rural operating and investment credit operations for family farmers and rural producers whose operations have been harmed due to drought or dry spells in municipalities within the area of operation of the Superintendence for the Development of the Northeast (Sudene), with a state of emergency or public calamity state declared by the Federal Executive Power.

The Central Bank of Brazil, in accordance with Art. 9 of Law No. 4,595, of December 31, 1964, makes it known that the National Monetary Council, in an extraordinary session held on February 7, 2024, considering the provisions of Art. 4, item VI, of Law No. 4,595, of 1964, of § 1 of Art. 15 of Law No. 7,827, of September 27, 1989, of § 4 of Art. 8-A of Law No. 10,177, of January 12, 2001, and of Art. 1 of Decree No. 7,728, of May 24, 2012,

R E S O L V E S:

Art. 1. An emergency line of rural operating credit is established, funded by the Northeast Financing Constitutional Fund (FNE), intended for family farmers, mini and small rural producers whose operations have been harmed by drought or dry spells in municipalities within the area of operation of the Superintendence for the Development of the Northeast (Sudene), with a declaration of a state of emergency or public calamity state due to drought or dry spells in the period from July 1, 2023, until the date of publication of this Resolution, with recognition by the Federal Executive Power, observing the provisions applicable to operations of this Fund that do not conflict with the following provisions of this article:

I - beneficiaries:

a) family farmers enrolled in the National Program for Strengthening Family Agriculture (Pronaf); and

b) mini and small rural producers;

II - purpose: credit for livestock operating costs, prohibiting the acquisition of animals, and it is mandatory, for family farmers enrolled in Group "B" of Pronaf, the use of the methodology of the National Program for Oriented Productive Microcredit (PNMPO);

III - credit limit per beneficiary:

a) family farmers enrolled in Group "B" and Group "A/C" of Pronaf: up to R$10,000.00 (ten thousand reais), regardless of the limits for these credit lines provided in Table 2 of MCR 7-6;

b) other family farmers: up to R$30,000.00 (thirty thousand reais);

c) mini rural producers: up to R$50,000.00 (fifty thousand reais);

d) small rural producers: up to R$80,000.00 (eighty thousand reais);

IV - financial charges:

a) family farmers enrolled in Group "B" and Group "A/C" of Pronaf: effective interest rate of 0.5% p.a. (five tenths percent per year);

b) other family farmers: effective interest rate of 4.0% p.a. (four percent per year); and

c) mini and small rural producers: effective interest rate of 8.01% p.a. (eight whole and one hundredth percent per year) or, when the compliance bonus is applied, 7.79% p.a. (seven whole and seventy-nine hundredths percent per year);

V - repayment: up to 5 (five) years, including up to 12 (twelve) months of grace period;

VI - deadline for contracting: until June 30, 2024.

§ 1. The rural credit operations contracted under this line by the family farmers referred to in item "a" of item IV shall be entitled to a compliance bonus of 40% (forty percent) on each installment paid in full until the due date.

§ 2. The rural credit operations contracted under this line by the other family farmers referred to in item "b" of item IV shall be entitled to a compliance bonus of 25% (twenty-five percent) on each installment paid in full until the due date.

Art. 2. The renegotiation of rural operating credit operations and rural investment installments, in a compliant status as of June 30, 2023, due and coming due in the period from July 1, 2023, to December 30, 2024, contracted with FNE resources by family farmers and other rural producers whose financed operations have been harmed by drought or dry spells in municipalities within the area of operation of the Superintendence for the Development of the Northeast (Sudene), with a declaration of a state of emergency or public calamity state due to drought or dry spells in the period from June 1, 2023, until the date of publication of this Resolution, with recognition by the Federal Executive Power, is authorized, maintaining the contractual conditions and observing the following specific conditions:

I - repayment:

a) operating credit installments extended by authorization of the National Monetary Council and investment credit: up to 100% (one hundred percent) of the value of the installments due by the borrower in the period may be extended for 2 (two) years after the end of the current contract; and

b) operating credit: up to 100% (one hundred percent) of the amount due by the borrower in the period may be renegotiated for payment in up to 48 (forty-eight) months, including up to 12 (twelve) months of grace period and repayment in annual installments;

II - financial charges: the outstanding balance must be updated by the normal financial charges agreed upon without the incidence of default interest and fines;

III - formalization of renegotiation: until December 30, 2024;

IV - compliance with the requirements provided for in MCR 2-6-4 and MCR 10-1-25 is waived;

V - the use of a "text stamp" in substitution for the contractual addendum is admitted, at the discretion of the financial institution.

Sole Paragraph. The provisions of this article do not apply to operations:

I - contracted by borrowers who have committed diversion of credit purpose, except when the irregularity has been remedied prior to the renegotiation of the debt;

II - of operating credit enrolled in the Program for Guarantee of Agricultural and Livestock Activity (Proagro) or with coverage of any rural production insurance;

III - whose operation has been proven to have been conducted without observance of the conditions of the Climate Risk Agricultural Zoning portarias (Zarc), when indicated.

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