Resolution CMN No. 2960 — Conditions and Procedures for Extending Debts Linked to the Bahia Cocoa Crop Recovery Program and Application of Remaining Resources

RESOLUTION NO. 2960

Dispenses with conditions and procedures to be observed in the formalization of debt extension operations linked to the Bahia Cocoa Crop Recovery Program and in the application of the balance of resources of the cited program.

The CENTRAL BANK OF BRAZIL, in accordance with Art. 9 of Law 4.595, of December 31, 1964, makes public that the MONETARY COUNCIL, in a session held on April 25, 2002, considering the provisions of Art. 4, item VI, of the aforementioned law, Arts. 4 and 14 of Law 4.829, of November 5, 1965, Art. 10 of Law 9.138, of November 29, 1995, and Art. 5 of Law 10.186, of February 12, 2001,

RESOLVES:

Art. 1. Financial institutions are authorized to renegotiate, in accordance with Resolution 2.471, of February 26, 1998, provided that the borrower's repayment capacity is demonstrated and risk assessment criteria are observed, debts incurred under the auspices of the Bahia Cocoa Crop Recovery Program up to December 31, 1997.

Sole Paragraph. The renegotiated operations remain under the risk of the financial agent, the National Treasury, or the Treasury of the State of Bahia, observing the same positions assumed in this regard in the original contracts.

Art. 2. The acquisition of National Treasury bonds, intended to guarantee the value of the principal in the renegotiation referred to in Art. 1, may be financed under the balance of resources reserved by the National Bank for Economic and Social Development (BNDES) for the program, provided that the borrower's inability to pay for said acquisition is demonstrated and the following conditions are observed:

I - repayment term: up to five years, according to the borrower's repayment capacity, with the amortization schedule reflecting the following proportionality, relative to the values paid annually, in conformity with the behavior of revenues from the activity:

a) 70% (seventy percent) in the month of January;

b) 30% (thirty percent) in the month of July;

II - financial charges: effective interest rate of:

a) 8.75% p.a. (eight and seventy-five hundredths percent per year) for small and medium producers;

b) 10.75% p.a. (ten and seventy-five hundredths percent per year) for large producers;

III - benefit: compliance bonus of 15% (fifteen percent) on each interest installment paid until the respective due date;

IV - equalization of financial charges: borne by the National Treasury and the Treasury of the State of Bahia, in equal shares;

V - operational risk: of the financial agent, the National Treasury, or the Treasury of the State of Bahia.

Sole Paragraph. The financing for the acquisition of National Treasury bonds is conditioned upon proof of the interested party's repayment capacity and the economic-financial viability of the project, taking into account the conditions established in items I to III.

Art. 3. Financial institutions are authorized to renegotiate, provided that the borrower's repayment capacity is demonstrated and risk assessment criteria are observed, debts incurred under the auspices of the Bahia Cocoa Crop Recovery Program after January 1, 1998, subject to the following conditions, in force since July 3, 2001, date of publication of Resolution 2.848, of June 29, 2001:

I - repayment term: ten years, including three years of grace period only for principal installments, with the amortization schedule reflecting the following proportionality, relative to the values paid annually, in conformity with the behavior of revenues from the activity:

a) 70% (seventy percent) in the month of January;

b) 30% (thirty percent) in the month of July;

II - financial charges: effective interest rate of:

a) 8.75% p.a. (eight and seventy-five hundredths percent per year), for small and medium producers;

b) 10.75% p.a. (ten and seventy-five hundredths percent per year), for large producers;

III - benefit: compliance bonus of 15% (fifteen percent) on each interest installment paid until the respective due date;

IV - equalization of financial charges: borne by the National Treasury and the Treasury of the State of Bahia, in equal shares.

Paragraph 1. The outstanding balances subject to repacturing remain under the risk of the financial agent, the National Treasury, or the Treasury of the State of Bahia, observing the same positions assumed in this regard in the original contracts.

Paragraph 2. The borrower is assured the release of contracted installments that have not yet been disbursed, observing the same conditions established in items I to III.

Art. 4. The remaining balance of the value of R$340,000,000.00 (three hundred and forty million Reais), provided for in Art. 1, item IV, of Resolution 2.165, of June 19, 1995, minus the values already committed and not yet released, as well as the values to be used in the financing of the acquisition of National Treasury bonds, referred to in Art. 2, may be applied in new operations of the program, subject to the following additional conditions:

I - repayment term: ten years, including three years of grace period for payment of principal and capitalized interest, with the amortization schedule reflecting the following proportionality, relative to the values paid annually, in conformity with the behavior of revenues from the activity:

a) 70% (seventy percent) in the month of January;

b) 30% (thirty percent) in the month of July;

II - financial charges: effective interest rate of:

a) 8.75% p.a. (eight and seventy-five hundredths percent per year), for small and medium producers;

b) 10.75% p.a. (ten and seventy-five hundredths percent per year), for large producers;

III - benefit: compliance bonus of 15% (fifteen percent) on each interest installment paid until the respective due date;

IV - equalization of financial charges: borne by the National Treasury and the Treasury of the State of Bahia, in equal shares;

V - operational risk: of the financial agent, the National Treasury, or the Treasury of the State of Bahia.

Sole Paragraph. In the application of the resource balance referred to in this article:

I - the financial institution must prioritize the service of borrowers of financing related to the previous phases of the program;

II - the repayment capacity of the interested parties and the economic-financial viability of the projects must be demonstrated, taking into account the conditions established in items I to III;

III - the financial charges of the National Program for Strengthening Family Agriculture (Pronaf) prevail, for borrowers who qualify as family farmers.

Art. 5. The responsibilities of the National Treasury and the Treasury of the State of Bahia, in assuming the operational risk referred to in Art. 2, item V, and Art. 4, item V, may not exceed, for each of the treasuries, 40% (forty percent) of the remaining balance of the resources originally made available for the program.

Art. 6. Financial institutions must maintain agreements with those responsible for the funding sources that underlie the operations subject to extension, with the aim of adjusting their respective repayment schedules to the new terms that will be practiced in the renegotiations governed by this resolution.

Art. 7. The renegotiation conditions established in this resolution do not apply to debts of cocoa growers classified as miniproducers, which must be extended based on the conditions established in Law 10.177, of January 12, 2001.

Art. 8. The Secretariats for Economic Monitoring and the National Treasury, of the Ministry of Finance, and for Agricultural Policy, of the Ministry of Agriculture and Supply, are authorized to jointly define the complementary measures necessary for the compliance with the provisions of this resolution, which will be published by the Central Bank of Brazil.

Art. 9. This resolution enters into force on the date of its publication.

Art. 10. Resolution 2.887, of August 31, 2001, is hereby revoked.

Brasília, April 25, 2002

Arminio Fraga Neto
President