Resolution CMN No. 2533 — Establishes Conditions for Financing the New Phase of the Recovery Program for Bahia's Cocoa Crop from 1998

RESOLUTION NO. 2533

Establishes conditions for financing the new phase of the Recovery Program for Bahia's Cocoa Crop, starting from 1998, intended for the recomposition of the crop with a view to combating the disease "witches' broom".

THE CENTRAL BANK OF BRAZIL, in accordance with Art. 9 of Law No. 4,595, of December 31, 1964, makes public that the NATIONAL MONETARY COUNCIL, in a session held on August 14, 1998, considering the dispositions of Art. 4, item VI, of the aforementioned Law, Art. 4 and 14 of Law No. 4,829, of November 5, 1965,

RESOLVES:

Art. 1 Alter Arts. 1, item IV, 2, and 4 of Resolution No. 2,513, of June 17, 1998, which shall enter into force with the following wording:

"Art. 1 Establish the following conditions intended for the implementation of the new phase of the Recovery Program for Bahia's Cocoa Crop governed by Resolution No. 2,165, of June 19, 1995, keeping unchanged the other conditions:
...............................................................

IV - financial charges:

a) miniproducer: the usual charges of the FNE;

b) small producer: Long-Term Interest Rate (TJLP) increased by an effective interest rate of 3% p.a. (three percent per year);

c) medium and large producers: TJLP increased by an effective interest rate of 4% p.a. (four percent per year);

.............................................................."

"Art. 2 Risk assumption by the
National and State Treasuries shall only be admitted in cases where the borrower's repayment capacity is proven, considering the maintenance of the family and the total indebtedness of the applicant, in accordance with criteria previously approved by the General Supervision Group.

"Sole Paragraph. In the case of the National Treasury, the risk assumption is further conditioned on the financing having sufficient and executable mortgage guarantees."

"Art. 4 Financial institutions are authorized to deem as being in normal course, until December 31, 1998, the operations previously formalized under the auspices of the Program."

Art. 2 This Resolution enters into force on the date of its publication.

Brasília, August 17, 1998

Gustavo H. B. Franco
President