Resolution CMN No. 3575 — Establishes Deadlines and Complementary Provisions for the Implementation of Articles 10 and 11 of Provisional Measure No. 432 of May 27, 2008

RESOLUTION NO. 003575

Establishes deadlines and complementary provisions for the implementation of the content contained in Articles 10 and 11 of Provisional Measure No. 432, of May 27, 2008.

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, in a session held on May 29, 2008, having regard to the provisions of Article 4, item VI, of the aforementioned Law, Articles 4 and 14 of Law No. 4,829, of November 5, 1965, Article 5 of Law No. 10,186, of February 11, 2001, and Article 41 of Provisional Measure No. 432, of May 27, 2008,

RESOLVES:

Article 1. The following deadlines are established for the implementation of the provisions of Articles 10 and 11 of Provisional Measure No. 432, of May 27, 2008, regarding the operations covered therein:

I - until September 30, 2008, for borrowers to express interest in replacing interest rates as provided in Article 10 of the Provisional Measure;

II - until March 31, 2009, for financial institutions to inform the Secretariat of the National Treasury of the Ministry of Finance of the number of contracts and the amounts covered by Articles 10 and 11 of the Provisional Measure.

Article 2. Financial institutions, at their discretion and based on the prerogatives contained in item 2.6.9 of the Rural Credit Manual, in cases where the borrower's inability to pay is proven, may renegotiate rural investment credit operations, contracted until June 30, 2007, with resources channeled by the National Bank for Economic and Social Development and equalized by the National Treasury, or backed by resources from the Finame Agricultural Special credit line, provided that the limit of 10% (ten percent) of the balance of investment operations carried out with these sources of resources in each financial institution is respected, and only for operations in a state of compliance at the time of renegotiation, observing the following conditions:

I - minimum payment of 40% (forty percent) of the value of the 2008 installment, until its due date or the date of renegotiation, whichever occurs first;

II - update of the outstanding balance of the operation until the date of renegotiation, incorporation of the remaining value of item I of this article into the total of the remaining installments, and distribution of the sum obtained into as many annual installments as there are remaining contractual installments, admitting an increase of up to three annual installments in the current schedule;

III - prioritization of producers with greater difficulty in making full payment of the installments within the established deadlines;

IV - deadlines:

a) until September 30, 2008, for borrowers to express interest in joining the debt renegotiation process;

b) until December 30, 2008, for formalizing the debt renegotiation.

V - financial institutions are authorized to request additional guarantees, among the usual ones for rural credit, when extending as provided in this article.

§ 1. In the States of Rio Grande do Sul and Mato Grosso, renegotiations may reach a limit of up to 30% (thirty percent) of the balance of investment operations carried out in the programs referred to in the caput in each financial institution in these States, and the additional deadline for payment provided for in item II of this article may be extended to up to five years.

§ 2. In Municipalities where a state of emergency or public calamity was declared after July 1, 2007, recognized by the Federal Government, whose motivating events negatively affected the production of the 2007/2008 agricultural harvest, the percentage limits for renegotiations established in this article do not apply, nor does the requirement for minimum payment in 2008 provided for in item I of this article.

§ 3. Renegotiations do not involve overdue installments, which must be renegotiated directly between borrowers and financial institutions, and the use of controlled resources of rural credit for this purpose is prohibited.

§ 4. The rural producer who renegotiates debt under the conditions established in this article will be prevented, until they fully settle their renegotiated investment operation, from contracting new investment financing with resources equalized by the National Treasury or with resources controlled by rural credit or by the Constitutional Financing Funds, throughout the National Rural Credit System (SNCR), with the obligation to present a declaration that they do not maintain prorogated debt under these conditions with the SNCR when contracting the new operation.

Article 3. Financial institutions are authorized to grant an additional deadline until October 1, 2008, for the payment of "current" installments, due in the period from January 1, 2008, to March 31, 2008, of the agribusiness investment operations referred to in item I of Article 1 of Resolution No. 3,563, of April 24, 2008.

Sole Paragraph. The measure provided for in the caput does not cover installments due in 2007 that were granted an additional payment deadline until February 15, 2008, in accordance with Article 4 of Resolution No. 3,523, of December 20, 2007.

Article 4. In the process of formalizing the renegotiations provided for in this Resolution, the provisions of Resolution No. 2,682, of December 21, 1999, regarding the classification of the aforementioned operations, must be observed.

Article 5. This Resolution enters into force on the date of its publication.

Brasília, May 29, 2008.

Henrique de Campos Meirelles
President