Resolution CMN No. 3576 — Establishes deadlines and complementary provisions for the implementation of Articles 12 and 13 of Provisional Measure No. 432 of May 27, 2008

RESOLUTION NO. 003576

Establishes deadlines and complementary provisions for the implementation of the content in Articles 12 and 13 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, 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, Article 5 of Law No. 10.186, of February 11, 2001, and Article 41 of Provisional Measure No. 432, of May 27, 2008,

RESOLVES:

Art. 1. Financial institutions are authorized to reduce, effective July 1, 2008, the interest rates from 8.75% (eight and seventy-five hundredths percent) per annum to 6.75% (six and seventy-five hundredths percent) per annum, for agricultural working capital operations that are backed by mandatory resources of rural credit, contracted in the 2003/2004, 2004/2005, and 2005/2006 harvests, which have been extended, including operations of the same kind within the scope of the Rural Job and Income Generation Program - Proger Rural, for which the use of the weighting factor provided for in MCR 6.2.10.b is permitted, from the date of the interest rate reduction.

Art. 2. Financial institutions are authorized to reduce, effective July 1, 2008, the interest rates from 8.75% (eight and seventy-five hundredths percent) per annum to 6.75% (six and seventy-five hundredths percent) per annum, for agricultural working capital operations that are backed by rural savings resources with interest rates equalized by the National Treasury, contracted in the 2003/2004, 2004/2005, and 2005/2006 harvests, which have been extended, as well as operations of the same kind within the scope of Proger Rural, observed:

I - that the Ministry of Finance will define the conditions for reimbursing financial agents for the costs resulting from the reduction of the interest rate of the operations covered by this article;

II - a deadline of up to October 31, 2008, for financial institutions to inform the National Treasury Secretariat of the Ministry of Finance of the number of operations and the amounts covered by this article.

Art. 3. For rural credit operations contracted within the scope of the FAT Giro Rural Program, established by a resolution of the Deliberative Council of the Worker Protection Fund - CODEFAT, and those originally carried out under the aegis of this program and reclassified based on Resolution No. 3.509, of November 30, 2007, of this Council, which fall under Article 13 of Provisional Measure No. 432, of 2008:

I - the Ministry of Finance will define the conditions for reimbursing financial agents for the costs resulting from the granting of the compliance bonus provided for in Article 13 of the aforementioned Provisional Measure;

II - a deadline of up to October 31, 2008, for financial institutions to inform the National Treasury Secretariat of the Ministry of Finance of the number of operations and the amounts covered by the granting of the aforementioned compliance bonus.

Art. 4. The extension of the final maturity of rural working capital operations carried out with rural savings resources, controlled rural credit resources, or under the National Program for Strengthening Family Agriculture - Pronaf or Proger Rural, contracted until June 30, 2006, and extended, or with FAT Giro Rural resources, is authorized for up to two years, with the extension counted from the already renegotiated deadlines, observed the following conditions:

I - update of the outstanding balance of the operation on the date of renegotiation, incorporating it on the date of formalization of the renegotiation, and division of the total value by the new number of installments, which may be quarterly, semi-annual, or annual;

II - permission to include the future installment due in 2008 in the renegotiation, with the requirement of payment in 2008 of the first installment with the adjusted value, considering the scheduled due dates;

III - granting of a deadline until December 30, 2008, for the formalization of debt renegotiations.

§ 1. In Municipalities where a state of emergency or public calamity was declared after July 1, 2007, recognized by the Federal Government, whose motivating events have negatively affected the production of the 2007/2008 agricultural harvest, the first installment referred to in item II of this article may be demanded in 2009.

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

§ 3. For operations backed by rural savings resources and agreed upon with free interest rates that fall under the conditions provided for in the caput, financial institutions may use, effective July 1, 2008, the prerogatives provided for in MCR 6-4-10, and the rate of these operations must be 10.5% p.a. (ten and five tenths percent per annum).

Art. 5. In the process of formalizing the renegotiations covered by this Resolution, the provisions of Resolution No. 2.682, of December 21, 1999, regarding the classification of the aforementioned operations, must be observed.

Art. 6. This Resolution enters into force on the date of its publication.

Brasília, May 29, 2008.

Henrique de Campos Meirelles
President