Resolution CMN No. 4161 — Authorizes the renegotiation of rural credit operations contracted by rice producers

The Central Bank of Brazil, pursuant to Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in an extraordinary session held on December 11, 2012, 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, and Article 5 of Law No. 10,186 of February 12, 2001,

R E S O L V E S:

Art. 1. The renegotiation of debts arising from rural credit operations for working capital and investment contracted by June 30, 2011, with full risk borne by the financial institutions, where the resources were destined for rice production, is authorized at the discretion of the financial institution, subject to the following conditions:

I - beneficiaries: rice farmers;

II - calculation of the outstanding balance: the past due and future installments of the operations subject to renegotiation must be updated according to the normal contractual charges, with a minimum amortization of 10% (ten percent) of the outstanding balance required, to be paid by the date of formalization of the renegotiation;

III - financial charges: effective interest rate of 5.5% p.a. (five and five-tenths percent per annum);

IV - repayment: up to 10 (ten) years, in annual installments, with the payment of the first installment to be made by May 2014;

V - volume and source of resources:

a) up to R$400,000,000.00 (four hundred million reais) from the National Bank for Economic and Social Development (BNDES), for operations originally contracted with resources from this source;

b) MCR 6-2 (Mandatory Resources), for other operations, through reclassification to this source of those operations contracted under the auspices of other sources;

VI - operating financial institutions: those members of the National Rural Credit System (SNCR) holding the operations subject to the renegotiation provided for in this Resolution;

VII - remuneration of the financial institution in operations renegotiated with BNDES resources, applicable to the outstanding balance of the new operation:

a) BNDES: 1% p.a. (one percent per annum); and

b) financial institution operator accredited by BNDES: 3.0% p.a. (three percent per annum);

VIII - guarantees: those provided for in rural credit operations;

IX - risk of the operations: of the operating financial institution;

Sole Paragraph. For the purposes of the renegotiation provided for in this Resolution:

I - the borrower must formally manifest their interest in renegotiating their rural debts with the creditor financial institution by April 30, 2013, which must formalize the operation by July 31, 2013;

II - operations that are in a state of default on the date of publication of this Resolution must remain in this condition until the effective formalization of the renegotiation or the settlement of the borrower's past due outstanding balance;

III - operations that are in a state of compliance on the date of publication of this Resolution, whose borrowers formally manifest interest in renegotiation, must remain in this condition until the effective formalization of the renegotiation;

IV - if the renegotiation of the operations referred to in item III of this paragraph is not formalized, the financial institution must apply default clauses from the date scheduled for the maturity of each operation not renegotiated.

Art. 2. Operations of Federal Government Loans (EGF) for rice from the 2009/2010 crop season extended based on Resolutions No. 3,952 of February 24, 2011, and No. 3,992 of July 14, 2011, and those under the auspices of the FAT Rural Working Capital credit line, may be subject to debt renegotiation in accordance with this Resolution, at the discretion of the financial institution.

Art. 3. The borrower who renegotiates their debts in accordance with this Resolution is prohibited from contracting new investment financing with rural credit resources, throughout the National Rural Credit System (SNCR), until they have fully amortized, at minimum, the installments scheduled for the three years subsequent to the formalization of the renegotiation.

Art. 4. No type of interest rate equalization and other financial charges by the Union to financial institutions is allowed due to the update of the outstanding balance during the period in which the operation subject to renegotiation remains in a state of default or is accounted for as a loss.

Art. 5. The debt renegotiation provided for in this Resolution does not cover operations renegotiated based on Article 5 of Law No. 9,138 of November 29, 1995, or renegotiated in accordance with Law No. 10,437 of April 25, 2002, or renegotiated based on Articles 3 or 4 of Law No. 10,177 of January 12, 2001, or, furthermore, those classified under Resolution No. 2,471 of February 26, 1998, and those renegotiated based on Resolution No. 4,028 of November 18, 2011, as well as those disqualified from rural credit due to irregularities in the use of credit.

Art. 6. The sole paragraph of Article 1 of Resolution No. 4,134 of September 5, 2012, shall enter into force amended with the following item IV:

“IV - working capital operations with partial coverage by the Agricultural Activity Guarantee Program (Proagro) or another type of agricultural insurance may be covered by the renegotiation, excluding the value related to the indemnity.” (NR)

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

Alexandre Antonio Tombini
President of the Central Bank of Brazil