CMN increases credit limits for states, DF and municipalities

The National Monetary Council (CMN) raised the global limit to BRL 6 billion for contracting credit operations to state, Federal District and municipal bodies and entities in 2023. This limit was also set at BRL 5 billion for 2024 and 2025. The resolution, which takes effect on June 1, was approved at a meeting this Thursday (18).

“The expansion of the annual global limits on the amounts in question is in line with the primary result projections for subnational entities contained in the 2023 Budget Guidelines Law (LDO). The use of these limits can be monitored by the institutions that make up the financial system and by the society, through the website of the Central Bank”, informed the Ministry of Finance.

Of the BRL 6 billion limit for this year, BRL 3 billion will be for credit operations with a Union guarantee and the other BRL 3 billion for operations without a Union guarantee. The limit of R$ 5 billion, in 2024 and 2025, will have R$ 3 billion for operations guaranteed by the Union and R$ 2 billion for operations without this guarantee.

agricultural sector

In another decision, the CMN once again allowed financing for the acquisition, transport, application and incorporation of agricultural correctives, such as limestone, and remineralizers under the Program for Modernization of Agriculture and Conservation of Natural Resources (Moderagro). According to the government, until the last agricultural year (2021/2022), this modality was financed only in the Program for Adaptation to Climate Change and Low Carbon Emissions in Agriculture (ABC+ Program).

“With the change, the rural producer will have more alternatives to meet his credit needs, being able to obtain resources with agility to finance the recovery of soils in a timely manner”, said the Ministry of Finance.

The Council also approved the amount of R$ 6.3 billion of resources earmarked in the General Budget of the Union for financing under the protection of the Coffee Economy Defense Fund (Funcafé).

Another adjustment approved by the government makes the rules for renegotiating rural credit operations more flexible under the National Program for Strengthening Family Agriculture (Pronaf). In this case, the CMN raised from two to three times the possibility of renegotiating each rural investment credit operation, up to the limit of 8% of the sum of the installments falling due in the respective year at each financial institution.

This extension of Pronaf’s rural credit operations is valid in cases where the borrower is unable to pay due to difficulties in selling the products, crop failure and occurrences that are detrimental to the development of plantations.

“The measure offers family farmers affected by recurrent adverse events an additional possibility to extend the repayment period of their debts and, thus, obtain additional time to regularize the flow of income necessary to honor commitments with financial institutions”, he pointed out. the farm note.

The CMN is a collegiate body chaired by the Minister of Finance, Fernando Haddad, and composed of the President of the Central Bank of Brazil, Roberto Campos Neto, and the Minister of Planning and Budget, Simone Tebet.