Resolution CMN No. 5110 — Defines Special Conditions for Working Capital Financing for Dairy Agricultural Cooperatives under Pronaf Agroindustry and Procap-Agro

RESOLUTION NO.

The current text of the MCR is available at the following electronic address:
www3.bcb.gov.br/mcr.

RESOLUTION NO. 5,110,
OF DECEMBER 21, 2023

Defines special conditions for working capital financing destined for agricultural production cooperatives in the dairy sector, within the scope of the Investment Credit for Income Aggregation (Pronaf Agroindustry) and the Program for Capitalization of Agricultural Production Cooperatives (Procap-Agro).

The Central Bank of Brazil, in accordance with art. 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held on December 21 of 2023, in accordance with arts. 4, item VI, of Law No. 4,595, of 1964, 4 and 14 of Law No. 4,829, of November 5, 1965, and §§ 3 and 4 of art. 3 of Law No. 11,326, of July 24, 2006,

R E S O L
V E D:

Art. 1 Section 18 (Transitional Norms) of Chapter 10 (National Program for Strengthening Family Agriculture – Pronaf) of the Rural Credit Manual (MCR) shall enter into force with the following alterations:

“8 - Working capital financing is admitted, until June 30 of 2024, under the protection of Section 6 (Investment Credit for Income Aggregation – Pronaf Agroindustry) of this Chapter, observing the general conditions of Pronaf and the following special conditions:

a) beneficiaries: single agricultural production cooperatives of family agriculture defined in MCR 10-6-3, when it is proven that at least 70% (seventy percent) of revenue comes from business conducted with associated milk producers;

b) repayment: up to 6 (six) years, including up to 24 (twenty-four) months of grace period;

c) credit limit: up to R$20,000,000.00 (twenty million reais) per cooperative, regardless of the limits established in Table 2, Investment Credit – Pronaf Agroindustry (MCR 10-6), of MCR 7-6;

d) financial charges: 4.0% (four percent) per year;

e) source of resources: resources subject to the Union's subsidy, in the form of financial charge equalization, as provided in MCR 6-1-2-“c”. ” (NR)

“9 - The agricultural production cooperative of family agriculture that contracts a credit operation based on the provisions of item 8 may only obtain financing under the protection and conditions of the line provided for in MCR 11-10-1 if the sum of the credit value obtained in the two lines does not exceed R$40,000,000.00 (forty million reais).” (NR)

Art. 2 Section 10
(Transitional Norms) of Chapter 11 (Programs with BNDES Resources) of the MCR is instituted, as per the annex to this Resolution.

Art. 3 This
Resolution enters into force on January 2, 2024.

ROBERTO
DE OLIVEIRA CAMPOS NETO
President of the Central Bank of Brazil

------------------------------------------------------------------ TITLE : RURAL CREDIT
CHAPTER : Programs
with BNDES Resources - 11
SECTION : Transitional
Norms

• 10 (*)

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1 - Working capital financing is admitted, until June 30 of 2024, under the protection of Section 2 (Program for Capitalization of Agricultural Production Cooperatives - Procap-Agro) of this Chapter, observing the general conditions applicable to this financing line and the following special conditions:

a) beneficiaries: single agricultural production cooperatives, when it is proven that at least 70% (seventy percent) of revenue comes from business conducted with associated milk producers;

b) repayment: up to 6 (six) years, including up to 24 (twenty-four) months of grace period;

c) credit limit: up to R$40,000,000.00 (forty million reais) per cooperative, regardless of the limits established in Table 2, Program for Capitalization of Agricultural Production Cooperatives – Procap-Agro (MCR 11-2), of MCR 7-7;

d) financial charges: 8.0% (eight percent) per year;

e) source of resources:
resources subject to the Union's subsidy, in the form of financial charge equalization, as provided in MCR 6-1-2-“c”.

2 - The agricultural production cooperative of family agriculture that contracts a credit operation based on the provisions of item 1 may only obtain financing under the protection and in the conditions of the line provided for in MCR 10-18-8 if the sum of the credit value obtained in the two lines does not exceed R$40,000,000.00 (forty million reais).