CMN Resolution No. 5123 Authorizes Renegotiation of Installments for Rural Investment Credit Operations with Maturity in 2024

Resolution No. 5,123

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

CMN RESOLUTION NO. 5,123, OF MARCH 28, 2024

Authorizes the renegotiation of installments of rural investment credit operations, maturing in 2024, contracted by family farmers, medium producers, and other rural producers whose income from the activity was harmed by climatic adversities or marketing difficulties.

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 March 28, 2024, in accordance with Articles 4, item VI, of Law No. 4,595, of 1964, 4 and 14 of Law No. 4,829, of November 5, 1965, and 5 of Law No. 10,186, of February 12, 2001,

R E S O L V E D:

Art. 1 Section 7 (Transitional Norms) of Chapter 3 (Operations) of the Rural Credit Manual (MCR) shall enter into force with the following alteration:

“7 - Financial institutions are authorized, at their discretion and in cases where the borrower's activity income has been harmed by climatic adversities or marketing difficulties due to a reduction in market prices, to renegotiate up to 100% (one hundred percent) of the principal of the installments, due or coming due in the period from January 2 to December 30, 2024, of rural investment credit operations related to soy and corn crops and beef and dairy cattle farming contracted and in a compliant status until December 30, 2023, maintaining the other contractual clauses and observing the following specific conditions:

a) eligible operations: installments of rural investment credit operations contracted with resources controlled within the scope of regional financing constitutional funds, the National Program for Strengthening Family Agriculture (Pronaf), the National Program for Supporting the Medium Rural Producer (Pronamp), Programs with BNDES Resources, and those contracted with resources from other sources with financial charge equalization by the National Treasury, respecting the provision in item “b”;

b) eligible operations must be necessarily linked to one of the following productive activities, provided that the enterprise is located in the respective federative units listed below:

I - soy, corn, and beef cattle production: Goiás and Mato Grosso;

II - beef and dairy cattle farming: Minas Gerais;

III - soy, corn, and dairy cattle production: São Paulo, Paraná, Rio Grande do Sul, and Santa Catarina;

IV - beef cattle production: Rondônia, Roraima, Pará, Acre, Amapá, Amazonas, and Tocantins;

V - soy, corn, and dairy and beef cattle production: Mato Grosso do Sul;

VI - dairy cattle farming: Espírito Santo and Rio de Janeiro;

c) outstanding balance: the installments to be renegotiated must be corrected by the contractual financial charges, including for the case of default when applicable, and the installments with maturity in the period from March 28 to April 15, 2024, may be corrected by the contractual charges for the normal situation during this period;

d) minimum payment in 2024: the borrower must pay, at minimum, the value corresponding to the financial charges contractually provided for the year 2024, observed that:

I - until the date of formalization of the renegotiation, the charges related to the installments with maturity until that date must be paid;

II - after the date of formalization, the contractual charges related to the remaining installments of 2024 must be paid until their respective maturity dates;

e) repayment, observed the provisions in items “c” and “d”:

I - operations whose last installment provided in the current repayment schedule has maturity in the year 2024, 2025, or 2026: up to 100% (one hundred percent) of the principal of the 2024 installments may be rescheduled for repayment up to 1 (one) year after the maturity of the last installment provided in the current repayment schedule;

II - operations whose last installment provided in the current repayment schedule has maturity after the year 2026: up to 100% (one hundred percent) of the principal of the 2024 installments must be added to the outstanding balance and redistributed in the coming installments;

f) deadline for formalizing the renegotiation: until May 31, 2024.

8 - The renegotiation referred to in item 7 does not apply to operations:

a) contracted within the scope of the Cooperative Development Programs for Value Addition to Agricultural Production (Prodecoop), Capitalization of Agricultural Cooperatives (Procap-Agro), and Investment Support (PSI);

b) renegotiated based on Article 5 of Law No. 9,138, of November 29, 1995, or classified under Resolution No. 2,471, of February 26, 1998, renegotiated or not in accordance with Law No. 10,437, of April 25, 2002.

9 - Rural producers holding rural investment credit operations with installments scheduled for payment in 2024, referring to products, activities, and regions not covered by the renegotiation referred to in item 7, if they have difficulties in making payment of these installments due to the situations described in MCR 2-6-4, may request the renegotiation of their debts observing the conditions provided in MCR 2-6-4 and 5, MCR 10-1-25 and 27, and MCR 11-1-4.” (NR)

Art. 2 Section 3 (Investment Credits) of Chapter 3 (Operations) of the MCR shall enter into force with the following alteration:

“12 - It is admitted that financial institutions use equalized resources for application in rural investment credit operations, observed the norms and conditions current for the programs with BNDES resources, referred to in MCR 11, and the limits and methodology for equalization of these resources defined by the Ministry of Finance, in accordance with Article 5 of Law No. 8,427, of May 27, 1992.” (NR)

Art. 3 This Resolution enters into force on April 15, 2024.

ROBERTO DE OLIVEIRA CAMPOS NETO
President of the Central Bank of Brazil