CMN Resolution No. 5129 Adjusts Rules for the Family Agriculture Price Guarantee Program (PGPAF)

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

CMN RESOLUTION NO. 5,129, OF APRIL 25, 2024

Adjusts rules for the Family Agriculture Price Guarantee Program (PGPAF), as provided for in Section 15 of Chapter 10 (National Program for Strengthening Family Agriculture – Pronaf) of the Rural Credit Manual (MCR).

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 April 25, 2024, based on the provisions of Article 4, item VI, of Law No. 4,595, of 1964; Articles 4 and 14 of Law No. 4,829, of November 5, 1965; Article 3, § 3, of Law No. 11,326, of July 24, 2006; Article 1, § 2, of Law No. 8,427, of May 27, 1992; and Article 5 of Decree No. 5,996, of December 20, 2006,

RESOLVES:

Article 1. Section 15 (Family Agriculture Price Guarantee Program – PGPAF) of Chapter 10 (National Program for Strengthening Family Agriculture – Pronaf) of the Rural Credit Manual (MCR) shall enter into force with the following alterations:

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a) .....................................................................................................................

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IV - when irregular application or diversion of resources from credit operations that were entitled to economic subsidy is verified, as well as the irregular granting of economic subsidy, transfer to the Union the value equivalent to the economic subsidy updated monetarily as provided in Article 6 of Law No. 8,427, of 1992;

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c) upon receiving the spreadsheets referred to in item I of letter “a”, the STN shall express its opinion, within a period of up to 10 (ten) business days counting from the day following the date of receipt, regarding the conformity of the values presented by the financial institution, and may request, within this period, any necessary corrections via electronic correspondence, and shall effect reimbursement within a period of up to 5 (five) business days, counted from the day subsequent to the date of receipt of the formal request sent by the financial institution;

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g) the responsibilities of the STN are limited to verifying the consistency of the values based on the calculation rules for applying the discount bonus and its reimbursement, not being responsible for information originating from the financial institutions;

h) the procedure for sending the information referred to in item I of letter “a” may be replaced by an informatized system that is adopted by the STN for the purpose of verifying the conformity of the values to be reimbursed.” (NR)

“14 - The financial institution may only grant discount bonuses on account of the PGPAF for borrowers who, on the date of payment of the installment, possess a valid Declaration of Aptitude for Pronaf (DAP) or a valid National Registry of Family Agriculture of the National Program for Strengthening Family Agriculture (CAF-Pronaf), electronically registered in the MDA registration system, provided that the payment is made until its due date, with the verification of active DAP or valid CAF-Pronaf registration in the MDA registration system being its responsibility.” (NR)

“15 - In the case of granting a discount bonus based on an invalid DAP, the financial institution must observe the procedure for returning the economic subsidy described in § 2 of Article 6 of Law No. 8,427, of 1992.” (NR)

Article 2. Item 6 of Section 15 of Chapter 10 of the MCR is hereby revoked.

Article 3. This Resolution enters into force on July 1, 2024.

ROBERTO DE OLIVEIRA CAMPOS NETO

President of the Central Bank of Brazil