The Chamber of Deputies concluded tonight (21) the vote on Provisional Measure 1.104/2022, known as MP do Agro, which extends the use of Solidarity Guarantee Funds (FGS) to any financial operation linked to rural business activity. The text goes to the Senate.
The provisional measure makes it possible to use these funds to guarantee rural bonds such as the Rural Product Cédula (CPR) and the Agribusiness Receivables Certificate (CRA). The guarantee encourages the negotiation of these papers in the financial market, as the funds can be used to cover eventual defaults of rural enterprises that declare bankruptcy and are unable to pay investors.
By the approved text, the FGS will also be able to guarantee debt consolidation operations. In this way, the funds will be able to cover debts renegotiated by rural producers that are not paid due to unforeseen circumstances, such as crop failures.
Created by groups of rural producers (individuals or legal entities), the Solidarity Guarantee Funds (FGS) provide a complementary guarantee to loans and financing contracted by agribusiness.
The MP also simplifies the formation of FGS, which can be formed only with debtor liability quotas and, if any, guarantors, such as an insurance company. Lenders, like banks, will not need to have shares in an FGS.
The requirement of a minimum percentage of FGS quotaholders, which was calculated on the outstanding balance (4% for primary quotaholders and 2% for creditors), was removed. According to the government, the simplification of the rules of these funds opens the possibility for rural producers to raise funds in other types of institutions, not just in banks.
The text also authorized the use of electronic signatures to certify CPRs. These titles will be able to receive subscriptions with simple, advanced and qualified security levels.
* With information from the Chamber Agency
