According to the sources, it has been reported that South municipalities rice farmers which were enacted emergency or public calamity state may renegotiate rural credit operations. In this regard, the published the resolution authorizing the renegotiation yesterday in the institution's information system, but the decision was taken at the meeting yesterday of the National Monetary Council (CMN).In the resolution, the Central Bank has clarified that the renegotiation applies only to rural credit operations, whose resources have been allocated to rice production in municipalities in the states of Rio Grande do Sul, Parana and Santa Catarina in Brazil. Further, in these states which has been enacted emergency or state of emergency due to flooding, heavy rains, floods and floods from 1 September 2015, and has recognition by the Ministry of National Integration. In these cases the beneficiaries of the measure are rural rice farmers, their associations and production cooperatives.
Furthermore, in this matter the renegotiation goes for rural credit operations contracted funding in 2015-2016 harvest, for past due or will win in 2016 the cost of operations of previous harvests the 2015-2016 extended for authorization CMN installments. They may also be renegotiated loans for investment and the Federal Government Loans (EGF) on rice.According to the resolution, they can be covered by renegotiating the rural funding operations with partial coverage of the Agricultural Activity Guarantee Program (PROAGRO) or other form of agricultural insurance, excluding the amount related to compensation.The deadline for making the renegotiation will until 30 December 2016. The borrower to renegotiate their debts is prevented from hiring new investment financing of rural credit resources until fully pay at least the plots planned for the next three years to the formalization of the renegotiations. The exception is for credit is for the investment project for irrigation.