Resolution CMN No. 3390 — Adjustments to Rural Credit Financing Norms, Peanut Inclusion in Reprogramming Benefits, and Amendments to Resolutions 3373 and 3376

RESOLUTION NO. 003390

Dispenses with adjustments to current norms for financing with controlled resources of rural credit, includes peanuts among the activities benefited by the reprogramming of overdue installments and extension of due installments in 2006, and amends Resolutions 3.373 and 3.376, both from 2006, which deal with the reprogramming of overdue installments and the granting of time for payment of due installments, in 2006, of operating and investment operations.

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law 4,595, of December 31, 1964, makes public that the MONETARY COUNCIL, in a session held on July 26, 2006, considering the provisions of Articles 4, item VI, of the aforementioned law, 4 and 14 of Law 4,829, of November 5, 1965, and 5 of Law 10,186, of February 12, 2001,

RESOLVED:

Article 1. Federal Government Loans (EGF), backed by controlled resources of rural credit, for each borrower, non-cumulative, in each harvest and throughout the National Rural Credit System (SNCR), are subject to the following limits and criteria:

I - R$500,000.00 (five hundred thousand reais), when destined for cotton;

II - R$400,000.00 (four hundred thousand reais), when destined for corn;

III - R$300,000.00 (three hundred thousand reais), when destined for soybeans;

IV - R$250,000.00 (two hundred and fifty thousand reais), when destined for peanuts, rice, beans, cassava, sorghum, or wheat;

V - R$200,000.00 (two hundred thousand reais), when destined for coffee;

VI - R$140,000.00 (one hundred and forty thousand reais), when destined for milk;

VII - R$80,000.00 (eighty thousand reais), when destined for other EGF operations.

Article 2. The beneficiary of operating credit for fish capture is not obliged to associate or remain associated with a cooperative or fishermen's colony.

Article 3. Credit for artisanal fishing operating must have its maturity fixed for a period of up to ninety days after the end of the closed season for the fisher's target species.

Article 4. Special Credit Line may be contracted, backed by mandatory resources (MCR 6-2), for all products, observing the conditions defined by interministerial ordinance of the Ministry of Finance and the Ministry of Agriculture, Livestock and Supply, regarding the specifications of each product and the financing values.

Article 5. The percentage of 7% (seven percent) of mandatory resources (MCR 6-2) is restored, respecting the limit of R$10,000,000.00 (ten million reais), for application in discount operations until June 30, 2007.

Article 6. The following provisions are amended:

I - art. 1, § 1, of Resolution 3.373, of June 19, 2006, which shall enter into force with the following wording:

"Art. 1. .............................................

§ 1. For borrowers whose main income is derived from the production of cotton, peanuts, rice, corn, soybeans, sorghum, or wheat, with recognized difficulty in commercialization due to prices, the granting of the new term may be carried out automatically, exempt from case-by-case examination and the formalization of an amendment to the credit instrument, at the discretion of the financial institution." (NR);

II - items I, for the inclusion of item "e", and II, for the inclusion of item "f", of art. 1 and art. 2 of Resolution 3.376, of June 21, 2006, which shall enter into force with the following wording:

"Art. 1. .............................................

I - ..................................................

e) of the 2005/2006 harvest, contracted with resources equalizable by cooperative banks and Banco do Brasil S.A., backed by the Employment and Rural Income Generation Program (Proger Rural) and the National Program for Strengthening Family Agriculture (Pronaf) - Groups "D" and "E";

II - .................................................

f) peanuts: 30% (thirty percent);" (NR)

"Art. 2. Extensions and repactuations carried out under Resolutions 3.363, of April 26, 2006, and 3.364, of April 26, 2006, replaced by Resolution 3.373, of June 19, 2006, are exempt from formal request by the producer, substituted by automatic implementation, when the benefited activity is the production of cotton, peanuts, rice, corn, soybeans, sorghum, or wheat." (NR)

Article 7. This resolution enters into force on the date of its publication.

Article 8. Article 2 of Resolution 3.369, of June 14, 2006, is repealed.

São Paulo, August 4, 2006.

Henrique de Campos Meirelles
President