Circular No. 4017 - Amends Parameters for Calculating and Charging Financial Cost for Deficiencies in Agricultural Credit Directives

The Collegiate Board of the Central Bank of Brazil, in a session held on May 7, 2020, based on Art. 21, § 2, of Law No. 4,829, of November 5, 1965,

R E S O L V E:

Art. 1 The Section 8 (Calculation and Charging of Financial Cost for Failure to Meet Obligations) of Chapter 6 (Resources) of the Rural Credit Manual (MCR) shall enter into force with the following alterations:

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Tjme = Weighted average interest rate by the value of contracting rural credit operations contracted by all financial institutions, in the prefixed modality, registered in the Rural Credit and Proagro Operations System (Sicor), granted in the reference agricultural year to meet the obligation and/or sub-obligation, expressed in annualized terms, with four decimal places and mathematical rounding.” (NR)

“6 - The RmOpC of cooperative banks, confederations of credit cooperative central organizations, and credit cooperative central organizations shall be calculated based on the aggregation of data contained in the Analytical Balance Sheets (Document No. 1) - Cadoc Code 4010 of all entities in the cooperative system granting rural credit operations.” (NR)

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a) average interest rate of prefixed rural credit operations contracted to meet the obligation to direct Mandatory Resources (MCR 6-2), except for operations contracted to meet the sub-obligations provided for in MCR 6-2-9 and 6-2-10;

b) average interest rate of prefixed rural credit operations contracted to meet the Pronaf sub-obligation, as provided for in MCR 6-2-10;

c) average interest rate of prefixed rural credit operations contracted to meet the Pronamp sub-obligation, as provided for in MCR 6-2-9;

d) average interest rate of prefixed rural credit operations contracted to meet the obligation to direct Rural Savings Resources (MCR 6-4); and

e) average interest rate of prefixed rural credit operations contracted to meet the obligation to direct Agribusiness Credit Letter Resources (MCR 6-7).” (NR)

“7-A - The Central Bank of Brazil will publish the Tjme values by the last business day of the month following the end of the reference agricultural year.” (NR)

Art. 2 Items 8, 13, and 14 of Section 8 of Chapter 6 of the MCR are hereby revoked.

Art. 3 This Circular enters into force on July 1, 2020.

Otávio Ribeiro Damaso Director of Regulation