Resolution CMN No. 3497 — Rebate Concession under Decree No. 6,200/2007 and Partial Extension of Pronaf Financing Installments

RESOLUTION No. 003497

Dispenses with the concession of a rebate as provided for in Decree No. 6,200, of 2007, and with permission for the partial extension of installments of financing under the National Program for Strengthening Family Agriculture (Pronaf).

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the MONETARY COUNCIL NATIONAL, in a session held on August 29, 2007, considering the provisions of Articles 4, item VI, of the aforementioned law, 4 and 14 of Law No. 4,829, of November 5, 1965, 5 of Law No. 10,186, of February 12, 2001, 1 of Law No. 8,427, of May 27, 1992, and 6 of Decree No. 6,200, of August 28, 2007,

RESOLVES:

Art. 1. The concession of a rebate on installments with maturity in 2007 of working capital agricultural financing extended from the 2003/2004, 2004/2005, and 2005/2006 harvests, contracted directly or indirectly by federal official banks and cooperative banks, under the National Program for Strengthening Family Agriculture (Pronaf), with budgetary resources transferred or equalized by the National Treasury or the Constitutional Financing Funds of the North (FNO), Northeast (FNE), and Center-West (FCO), or even with controlled resources of rural credit from demand deposits (MCR 6-2) or rural savings (MCR 6-4), is authorized, provided that the borrowers have their overdue installments until December 31, 2006, in a compliant situation and settle their obligations by the respective maturity date, considering the time extension authorized by the Monetary Council, observing the following percentages for each harvest and group:

Harvest	Pronaf - Group	Rebate on installments with maturity in 2007
2003/2004	A/C, C or D	35%
2003/2004	E	20%
2004/2005	A/C, C or D	30%
2004/2005	E	20%
2005/2006	A/C, C or D	20%
2005/2006	E	15%

§ 1. In the event of payment of at least 50% (fifty percent) of the obligations referred to in the caput, the respective rebate percentage shall be applied to the paid value, granting an extension of the remaining balance for up to one year after the maturity of the last installment.

§ 2. In the event of payment, until December 31, 2007, of installments due from 2008 onwards, the respective rebate percentage shall be applied to the paid value.

Art. 2. The concession of a rebate on installments with maturity in 2007 of rural investment financing contracted under Pronaf, with resources transferred or equalized by the National Treasury, or by FNO, FNE, and FCO, is authorized, provided that the borrowers have their overdue installments until December 31, 2006, in a compliant situation and settle their obligations by the respective maturity date, considering the time extension authorized by the Monetary Council, in the following manner:

I - Group B: rebate of 10% (ten percent);

II - other groups and investment credit lines of Pronaf: rebate of 18% (eighteen percent).

Sole Paragraph. In the event of partial payment, until the respective maturity dates, considering the time extension authorized by the Monetary Council, with amortization:

I - greater than 50% (fifty percent) of the obligations: the respective rebate percentage applicable according to item I or II of the caput shall be applied to the paid value, granting an extension of the remaining balance for up to one year after the maturity of the last installment;

II - of 15% (fifteen percent) and up to 50% (fifty percent) of the obligations: a rebate of 5% (five percent) shall be granted on the total value of the 2007 installments, in substitution for the rebate established in the caput, allowing the extension of the remaining balance for up to one year after the maturity of the last installment.

Art. 3. The rebates provided for in this resolution are cumulative to any contractual compliance bonuses.

Art. 4. For borrowers of financing referred to in Articles 1 and 2 who settled the installments with maturity in 2007 before the date of entry into force of this resolution, provided that the operations still show a debtor balance, the respective rebate shall be calculated on the nominal value of the settled installments and granted through a reduction in the debtor balance of the operation.

Sole Paragraph. The rebate referred to in this article is limited to the value of the debtor balance of the operation.

Art. 5. For the extension of financing in the manner of this resolution, whose operations are backed by financial resources and the operational risk attributed to the National Treasury, it will be necessary to formalize an amendment to the contract originally signed by the borrower.

Art. 6. The financial agents responsible for the operations covered by the rebates provided for in this resolution, whose costs are the responsibility of the National Treasury, must provide to the Secretariat of the National Treasury of the Ministry of Finance, by magnetic means, at the time of requesting payment to that secretariat, an individualized list of the beneficiaries of the rebates, classified by Pronaf group or investment credit line in which there is no specification of the group in the operation, containing the value of each operation, the date of concession of the benefit, and the value of the rebate granted.

Art. 7. It is authorized, for working capital operations of the 2006/2007 harvest contracted under Pronaf:

I - the extension, for maturity in 2008, of up to 30% (thirty percent) of the debtor balance upon request, exclusively for borrowers of working capital operations extended from the 2003/2004, 2004/2005, or 2005/2006 harvests with a debtor balance in 2007, and only after they have settled, in this year, the debtor balances of these operations, including installments with maturity in the coming years;

II - that the installments of 2007 that were due and unpaid until the date of entry into force of this resolution, or due until September 28, 2007, be calculated and maintained under normal conditions, for all purposes, until that date, including regarding financial charges and other bonuses agreed upon for normal situations.

Art. 8. The costs resulting from the concession of the rebates and the extensions of the remaining obligations, referred to in this resolution, shall be assumed:

I - by FNO, FNE, or FCO, in operations backed by their resources, each responding for the costs related to its portfolio;

II - by the National Treasury, in other cases, limited to the budgetary allocation and financial availability destined for the purpose and observing the provisions of Law No. 8,427, of May 27, 1992.

Art. 9. In the extensions referred to in this resolution, the provisions of Resolution No. 2,682, of December 21, 1999, regarding the classification of operations, must be observed.

Art. 10. This resolution enters into force on the date of its publication.

Brasília, August 30, 2007.

Alexandre Antonio Tombini
President, substitute