Resolution CMN No. 3373 — Reprogramming of Overdue Installments and Granting of Time for Payment of Future Installments in 2006 for Agribusiness Investment Operations

RESOLUTION NO. 3373

Dispenses with the reprogramming of overdue installments and the granting of time for payment of future installments, in 2006, of agribusiness investment operations.

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 May 25, 2006, considering the provisions of Article 4, item VI, of the aforementioned law, Articles 4 and 14 of Law No. 4,829 of November 5, 1965, and Article 5 of Law No. 10,186 of February 12, 2001,

RESOLVES:

Article 1. Grant an additional period of up to one year after the maturity of the last installment contained in the current repayment schedule for the payment of installments (principal, interest, and accessories) that are overdue or due in 2006, maintaining the normal charges agreed upon in the credit instrument, observing the following conditions:

I - The measure applies to agribusiness investment operations carried out with the following resources:

a) From investment programs backed by transfers from the National Bank for Economic and Social Development (BNDES) and with equalization by the National Treasury;

b) Finame Agrícola Especial, administered by BNDES;

c) Provided for in MCR 6-2 (mandatory resources) and MCR 6-4 (rural savings), not equalizable by the National Treasury;

d) From the National Program for Strengthening Family Agriculture (Pronaf) and the Program for Generation of Employment and Rural Income (Proger Rural), including those transferred by the National Treasury;

e) From the Special Credit Program for Agrarian Reform (Procera);

II - Case-by-case examination.

§ 1. For borrowers whose main income originates from the production of cotton, rice, corn, soybeans, sorghum, or wheat, with recognized difficulty in commercialization due to prices, the granting of the new term may be implemented automatically, dispensed with the case-by-case examination and the formalization of an amendment to the credit instrument, at the discretion of the financial institution.

§ 2. The provisions of § 1 apply to family farmers from Pronaf whose main income originates from milk production.

§ 3. The provisions of this article:

I - Do not apply to operations of producers whose main income originates from:

a) The production of coffee, sugarcane, or crops that did not have climatic problems;

b) Products that do not have commercialization difficulties due to prices;

II - Is conditioned upon the presentation of a formal request by the borrower to the creditor financial institution by July 31, 2006, which will have until September 30, 2006, to formalize the amendments, when applicable, maintaining the operations classified as normal.

Article 2. The extensions referred to in this resolution must be carried out without prejudice to the observance of the provisions of Resolution No. 2,682 of December 21, 1999, regarding the classification and the constitution of provisions for doubtful collection credits for the operations in question.

Article 3. This resolution enters into force on the date of its publication.

Article 4. Resolution No. 3,364 of April 26, 2006, is hereby revoked.

São Paulo, June 19, 2006.

Henrique de Campos Meirelles
President