Resolution CMN No. 3732 — Grants Additional Time for Payment of Working Capital and Investment Loans under Pronaf in Flood or Drought-Affected Regions and Establishes Emergency Credit Line

RESOLUTION NO. 3732

Dispenses with the granting of additional time for payment of installments of working capital and investment operations contracted under the National Program for Strengthening Family Agriculture (Pronaf) in regions affected by floods or drought and establishes an Emergency Credit Line for financing activities of family farmers affected by floods or drought.

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 an extraordinary session held on June 16 and 17, 2009, having regard to the provisions of Article 4, item VI, of Law No. 4,595 of 1964, Articles 4 and 14 of Law No. 4,829 of November 5, 1965, Article 7, § 2, of Law No. 9,126 of November 10, 1995, Article 6-A of Law No. 10,177 of January 12, 2001, and Articles 2 and 5 of Law No. 10,186 of February 12, 2001,

RESOLVES:

Art. 1 Financial institutions are authorized, for family farmers who suffered income losses due to drought in the states of Rio Grande do Sul, Santa Catarina, Paraná, Mato Grosso do Sul, and São Paulo, whose municipalities declared a state of emergency or public calamity between December 1, 2008, and May 13, 2009, recognized by the respective state governments until June 15, 2009, to:

I - extend, until August 15, 2009, the due date of installments due or coming due between January 1 and August 14, 2009, provided that the operation was in a compliant status on January 1, 2009, for the following rural credit operations contracted under:

a) National Program for Strengthening Family Agriculture (Pronaf): working capital operations for the 2007/2008 harvest, in the case of livestock and biennial crop working capital, and for the 2008/2009 harvest, provided that the operations were not included in the Agricultural Activity Guarantee Program (Proagro) or "Proagro Mais";

b) National Program for Strengthening Family Agriculture (Pronaf): working capital operations extended from previous harvests and investment operations;

c) Banco da Terra;

d) National Land Credit Program (PNCF); and

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

II - renegotiate, upon request by the borrower until the respective due date, the repayment of up to 100% (one hundred percent) of the installments of the working capital operations included in item "a" of item I of this article, coming due between August 15 and December 30, 2009, including installments that are extended based on the aforementioned item, over a period of up to 3 (three) years, with the 1st installment due in 2010, observing the period for obtaining revenues by the producer;

III - extend, upon request by the borrower until the respective due date, the repayment of up to 100% (one hundred percent) of the installments of the credit operations included in items "b", "c", "d", and "e" of item I of this article, coming due between August 15 and December 30, 2009, including installments that are extended based on the aforementioned item, for up to 1 (one) year after the due date of the last installment provided in the contract.

Sole Paragraph. For the working capital and investment operations referred to in this article, the right to the price guarantee discount provided for in Section 15 of Chapter 10 of the Rural Credit Manual (MCR) is maintained, when applicable, provided that the installments are paid until the new due date.

Art. 2 Financial institutions are authorized, for family farmers who suffered income losses due to floods in the states of Acre, Amazonas, Bahia, Ceará, Maranhão, Pará, Paraíba, Piauí, and Rio Grande do Norte, whose municipalities declared a state of emergency or public calamity between April 1, 2009, and May 27, 2009, recognized by the respective state governments until June 15, 2009, to:

I - extend, until October 15, 2009, the due date of installments due or coming due between April 1 and October 14, 2009, provided that the operation was in a compliant status on April 1, 2009, for the following rural credit operations contracted under:

a) National Program for Strengthening Family Agriculture (Pronaf): working capital operations for the 2007/2008 harvest, in the case of livestock and biennial crop working capital, and for the 2008/2009 harvest, provided that the operations were not included in Proagro or "Proagro Mais";

b) National Program for Strengthening Family Agriculture (Pronaf): working capital operations extended from previous harvests and investment operations;

c) Banco da Terra;

d) National Land Credit Program (PNCF); and

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

II - renegotiate, upon request by the borrower until the respective due date, the repayment of up to 100% (one hundred percent) of the installments of the working capital operations included in item "a" of item I of this article, coming due between October 15 and December 30, 2009, including installments that are extended based on the aforementioned item, over a period of up to 3 (three) years, with the 1st installment due in 2010, observing the period for obtaining revenues by the producer;

III - extend, upon request by the borrower until the respective due date, the repayment of up to 100% (one hundred percent) of the installments of the credit operations included in items "b", "c", "d", and "e" of item I of this article, coming due between October 15 and December 30, 2009, including installments that are extended based on the aforementioned item, for up to 1 (one) year after the due date of the last installment provided in the contract.

Sole Paragraph. For the working capital and investment operations referred to in this article, the right to the price guarantee discount provided for in Section 15 of Chapter 10 of the MCR is maintained, when applicable, provided that the installments are paid until the new due date.

Art. 3 The installments of investment credit operations under Pronaf with due dates in 2008, which were extended by the respective financial agents to May 15, 2009, may also be subject to the provisions set forth in Articles 1 and 2 of this Resolution.

Art. 4 The case-by-case analysis of proof of losses or inability to pay for the effective renegotiation or extension referred to in Articles 1 and 2 of this Resolution is waived, at the discretion of each financial agent.

Art. 5 Financial agents, in the process of formalizing the renegotiations referred to in Articles 1 and 2 of this Resolution, must observe the provisions of Resolutions Nos. 2,682 of December 21, 1999, and 3,499 of September 27, 2007.

Art. 6 An Emergency Credit Line is established for financing activities of family production units included in Pronaf affected by floods or droughts, observing the general rules established for the granting of rural credit, provided they do not conflict with the following special conditions:

I - beneficiaries:

a) family farmers from the states of Rio Grande do Sul, Santa Catarina, Paraná, Mato Grosso do Sul, and São Paulo who suffered income losses due to drought, whose municipalities declared a state of emergency or public calamity between December 1, 2008, and May 13, 2009, recognized by the respective state governments until June 15, 2009;

b) family farmers from the states of Acre, Amazonas, Bahia, Ceará, Maranhão, Pará, Paraíba, Piauí, and Rio Grande do Norte who suffered income losses due to floods, whose municipalities declared a state of emergency or public calamity between April 1, 2009, and May 27, 2009, recognized by the respective state governments until June 15, 2009;

II - purpose: as stated in the Rural Credit Manual (MCR) 10.13.1.b, may be granted upon presentation of a simplified credit proposal;

III - limit per beneficiary: up to R$2,000.00 (two thousand reais) in a single operation, independent of the limits established for other credit modalities under Pronaf;

IV - financial charges: effective interest rate of 0.5% p.a. (five tenths percent per annum);

V - repayment term: up to 2 (two) years;

VI - remuneration of financial agents: 6% p.a. (six percent per annum) on outstanding balances;

VII - source: Official Credit Operations (OOC), Constitutional Financing Fund for the North (FNO), Constitutional Financing Fund for the Northeast (FNE), and Constitutional Financing Fund for the Center-West (FCO);

VIII - resource limit per source:

a) Official Credit Operations: R$150 million;

b) FCO: R$15 million;

c) FNE: R$90 million;

d) FNO: R$30 million;

IX - contracting date: until December 30, 2009;

X - operational risk: borne by the Union, in financings with resources from the budget of Official Credit Operations, and by the constitutional funds, in operations carried out with resources from those funds.

Sole Paragraph. Resources from the FCO, FNE, and FNO may only be used in operations destined for family farmers included in groups "A", "A/C", and "B" of Pronaf.

Art. 7 This Resolution enters into force on the date of its publication.

Art. 8 Resolution No. 3,724 of May 15, 2009, is hereby revoked.

Brasília, June 17, 2009.

Mário Magalhães Carvalho Mesquita
President, substitute