Resolution CMN No. 2117 - Establishes the Third Phase of the Japanese-Brazilian Cooperation Program for the Development of the Cerrados (PRODECER III) - Agroindustrial Segment

RESOLUTION NO. 2117

Establishes the Third Phase of the Japanese-Brazilian Cooperation Program for the Development of the Cerrados (PRODECER III) - Agroindustrial Segment.

The CENTRAL BANK OF BRAZIL, pursuant to Article 9 of Law No. 4,595 of December 31, 1964, makes public that the NATIONAL MONETARY COUNCIL, in a session held on October 19, 1994, considering the provisions of Article 4, items VI, IX, and XVII, of the aforementioned Law,

HAS RESOLVED:

Article 1. To establish the Third Phase of the Japanese-Brazilian Cooperation Program for the Development of the Cerrados (PRODECER III), which shall be governed in the agroindustrial segment by the provisions contained in the attached regulation.

Article 2. Operations linked to PRODECER III shall be carried out using resources from the Japan International Corporation Agency (JICA), private Japanese banks, Official Credit Operations of the General Budget of the Union, and the counterpart contributions of financial agents and credit beneficiaries.

Article 3. The Central Bank of Brazil is authorized to issue norms and adopt measures deemed necessary for the execution of the provisions of this Resolution.

Article 4. This Resolution enters into force on the date of its publication.

Brasília, October 19, 1994

Pedro Sampaio Malan
President

ATTACHED REGULATION TO RESOLUTION NO. 2,117, OF OCTOBER 19, 1994, WHICH ESTABLISHES THE JAPANESE-BRAZILIAN COOPERATION PROGRAM FOR THE DEVELOPMENT OF THE CERRADOS - THIRD PHASE (PRODECER III) - AGROINDUSTRIAL SEGMENT

CHAPTER I

General Provisions

Article 1. The agroindustrial segment of the Japanese-Brazilian Cooperation Program for the Development of the Cerrados - Third Phase (PRODECER III) aims at the utilization, on an industrialization scale, of products of vegetable and animal origin generated in the areas of operation of the program.

Article 2. The Pilot Project of the program has its coverage area in the States of Tocantins and Maranhão.

Article 3. Federal official banks may be financial agents of the program.

Article 4. The remuneration of the financial agent is established by the Secretariat of the National Treasury of the Ministry of Finance.

Article 5. The Agricultural Promotion Company (CAMPO), through an agreement with the financial agents, shall exercise the technical coordination of the program, under the supervision of the Ministry of Agriculture, Supply and Agrarian Reform.

Article 6. The analysis of the technical, economic, and financial viability of the project is the responsibility of CAMPO or a person delegated by it, reserved to the financial agent, in the capacity of responsible for the risk of the operation, the homologation right.

Article 7. Technical and managerial assistance is the competence of CAMPO and is mandatory during the implementation phase of the project.

Article 8. The cost of technical and managerial assistance cannot exceed 1% per annum (one percent per year), calculated on the outstanding balance of the financing and due only during the period of implementation of the project.

Article 9. The general norms of the MCA apply to operations that do not conflict with the provisions of this regulation.

CHAPTER II

Beneficiary Segments

Article 10. Beneficiaries of the program are rural producers' cooperatives and other companies, whose projects aim at:

I - the processing or industrialization of any type of raw material generated in the coverage area of the program and its surroundings;

II - the production of agricultural inputs, including fertilizers and agricultural lime;

III - the manufacturing of food packaging;

IV - the provision of cold storage services;

V - the execution of economic infrastructure supporting the commercialization of agricultural products.

CHAPTER III

Purposes

Article 11. May be financed by the program:

I - the implementation, expansion, reform, modernization, or relocation of industrial units;

II - the working capital indispensable to the normal functioning of the cooperative or company in the year following the completion of the project;

III - Investment items related to the execution of the industrial plant included in the project are financeable, such as:

a) civil construction;

b) machinery and equipment;

c) installations, assemblies, and freight;

d) cargo vehicles, new and of national manufacture, when part of the global project;

e) anti-pollution equipment and installations necessary for the treatment of waste from industrial production;

f) furniture and utensils, office and laboratory;

g) feasibility study;

h) "engineering";

i) operational tests;

j) preparation of technical personnel linked to the project;

l) technical-managerial assistance during the implementation of the project;

m) other items that CAMPO considers indispensable.

Article 12. Are not subject to financial support by the program, even if they are part of the project:

I - acquisition of land, except if intended for the installation of an agricultural lime plant, in which case the area must be limited to 100 (one hundred) hectares, including the plot designated for forest reserve, corresponding to 50% (fifty percent) of the total area;

II - acquisition of units already built or under construction;

III - isolated acquisition of cargo vehicles.

Article 13. The cost of project elaboration, for financing purposes, cannot exceed 1% (one percent) of the value of approved investments.

Article 14. Working capital cannot be the object of isolated financing.

CHAPTER IV

Operational Conditions

Article 15. The limit of financings is up to 95% (ninety-five percent) of the financeable items of the project.

Article 16. The financeable portion of working capital must be within the ceiling of 30% (thirty percent) of the financeable fixed investments.

Article 17. The term of financings is up to 15 (fifteen) years, already including up to 6 (six) years of grace period.

Article 18. Financings are subject to remuneration by the Reference Rate (TR), observing the regulation issued by the Central Bank of Brazil, applicable to active and passive operations practiced within the scope of the financial market, increased by an effective interest rate of 6% per annum (six percent per year).