Resolution CMN No. 2765 — Conditions and Procedures for Renegotiating Rural Credit Operations for Miniproducers and Small Rural Producers

RESOLUTION NO. 002765

Dispenses with conditions and procedures to be observed in the renegotiation of rural credit operations for miniproducers and small rural producers.

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 August 10, 2000, considering the provisions of Articles 4, item VI, of the aforementioned Law, 4 and 14 of Law No. 4.829, of November 5, 1965, 1 of Law No. 8.427, of May 27, 1992, with the wording given by Law No. 9.848, of October 26, 1999, and 3, paragraph 2, and 6 of Provisional Measure No. 2.050-11, of July 28, 2000,

RESOLVES:

Article 1. The renegotiation of operating credit operations for miniproducers and small rural producers, contracted in the period from June 20, 1995, to December 31, 1997, in arrears or subject to previous extensions, is authorized, observing the following conditions:

I - repayment term, counted from the date of renegotiation: five years, plus one year of grace period;

II - financial charges:

a) until November 9, 1999: the charges originally agreed upon for a normal situation, applicable since the first contracting;

b) from November 10, 1999: effective interest rate of 3% p.a. (three percent per year).

Article 2. The adoption of the following measures is authorized, applicable to investment credit operations for miniproducers and small rural producers, formalized in the period from June 20, 1995, to December 31, 1997, with an originally contracted value of up to R$15,000.00 (fifteen thousand reais):

I - alteration in financial charges:

a) until November 9, 1999: application of the charges originally agreed upon for a normal situation;

b) from November 10, 1999: application of an effective interest rate of 3% p.a. (three percent per year);

II - extension of installments due in the year 2000 and in the year 2001 to the first and second subsequent years following the year of maturity of the last previously agreed installment;

III - granting of a compliance bonus of 30% (thirty percent), applicable, from the year 2002, on each installment of the debt paid by the respective due date.

Sole Paragraph. In the event of late payment, the beneficiary loses the right to the compliance bonus on the due and future installments.

Article 3. A rebate of 10% (ten percent) on the value of the due installments of investment credit for miniproducers and small rural producers, formalized in the period from June 20, 1995, to December 31, 1997, with an originally contracted value above R$15,000.00 (fifteen thousand reais), is authorized, provided they are paid by the agreed due date.

Article 4. Miniproducers and small rural producers, for the purposes of this Resolution, are those who obtain:

I - 80% (eighty percent), at minimum, of the family income from the agricultural and non-agricultural exploitation of the establishment;

II - annual family gross income of up to R$27,500.00 (twenty-seven thousand and five hundred reais).

Paragraph 1. Non-agricultural income is understood as that related to rural tourism and artisanal production, which are compatible with the nature of the rural exploitation and with the best use of family labor.

Paragraph 2. In the calculation of annual family gross income, 50% (fifty percent) of the gross income from the activities of poultry farming, aquaculture, dairy cattle farming, goat farming, fruit farming, vegetable farming, sheep farming, sericulture, and pig farming must be deducted.

Article 5. The authorizations provided for in this Resolution cover financing granted with resources:

I - from the rural credit liabilities and free of the financial institutions, at their discretion, as they are responsible for absorbing the financial impacts verified;

II - passed on or equalized by the National Treasury, whose financial impacts will be absorbed by the Union;

III - from the Coffee Economy Defense Fund (FUNCAFÉ), whose financial impacts will be absorbed by the aforementioned Fund.

Article 6. The alterations in the credit instruments, related to the measures authorized by this Resolution, must be formalized by October 31, 2000.

Article 7. The Secretariats of the National Treasury, of the Ministry of Finance, and of Family Agriculture, of the Ministry of Agrarian Development, are authorized to jointly define the complementary measures necessary for the fulfillment of the provisions of this Resolution, which will be published by the Central Bank of Brazil.

Article 8. This Resolution enters into force on the date of its publication.

Article 9. Resolution No. 2,730, of June 14, 2000, is repealed.

Brasília, August 10, 2000

Arminio Fraga Neto
President