Resolution CMN No. 3924 — Establishes Emergency Credit Line for Family Farmers Affected by Drought in Semi-Arid Municipalities of Northeastern States and Minas Gerais

RESOLUTION NO. 003924

Establishes Emergency Credit Line for family farmers with enterprises affected by drought in municipalities of the semi-arid region of the states of the Northeast and of Minas Gerais.

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 a session held on November 25, 2010, considering 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,

RESOLVES:

Article 1. An emergency credit line is established for financing family production units enrolled in the National Program for Strengthening Family Agriculture (Pronaf), observed the general credit rules and the following special conditions:

I - beneficiaries: family farmers who hold a valid "Declaration of Aptitude for Pronaf (DAP)" and who operate in municipalities of the semi-arid region, defined in item IV of Article 5 of Law No. 7,827, of September 27, 1989, of the states of Bahia, Ceará, Maranhão, Minas Gerais, Paraíba, Pernambuco, Piauí and Rio Grande do Norte, which, due to drought, have declared a situation of emergency or state of public calamity between January 1 and September 30, 2010, recognized by the respective state governments;

II - purpose: financing of livestock working capital;

III - limit: R$2,000.00 (two thousand reais) per family unit, in a single operation, independent of the limits established for other credit modalities within the scope of Pronaf;

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

V - benefit: compliance bonus of 25% (twenty-five percent) on each installment of the debt paid by its due date;

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

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

VIII - sources and volumes of resources:

a) Northeast Financing Constitutional Fund (FNE): up to R$110,000,000.00 (one hundred and ten million reais);

b) General Budget of the Union (OGU) - Official Credit Operations (OOC): up to R$40,000,000.00 (forty million reais);

IX - contracting period: until March 15, 2011;

X - risk of the operation: of the Union, in financings contracted with resources from the budget of the Official Credit Operations; and of the FNE, in operations carried out with resources from that fund;

XI - FNE resources may only be used in operations destined for family farmers enrolled in Groups "A", "A/C" and "B" of Pronaf.

Article 2. This resolution enters into force on the date of its publication.

São Paulo, November 25, 2010.

Henrique de Campos Meirelles
President