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CMN allocates R$ 6 billion to Funcafé financing

CMN allocates R$ 6 billion to Funcafé financing

Coffee producers will have R$ 6.06 billion available in credit from the Coffee Economy Defense Fund (Funcafé). The amount was approved today (28) by the National Monetary Council (CMN) for this year and is slightly higher than the R$ 5.9 billion approved in 2021.

In a note, the Ministry of Economy reported that it had complied with the request of the Ministry of Agriculture, Livestock and Supply for Funcafé resources to be defined globally, without discrimination by credit line. According to the economic team, the decision gives the Ministry of Agriculture autonomy to decide on the distribution of resources to financial institutions and priority credit lines.

Last year, the CMN had to approve two resolutions reallocating resources within Funcafé to finance the recovery of coffee plantations affected by frost last winter. Allocating the amounts globally will give the Ministry of Agriculture more flexibility in the event of new unforeseen weather events in this crop.

The CMN also raised from R$30 million to R$50 million the cost credit limit that each coffee production cooperative can borrow. The limit on operations per cooperative member was maintained at R$500,000.

“Production cooperatives play an important role in coffee production due to their operational capacity and capillarity in the distribution of resources directly to coffee growers, especially in this period of increasing production costs, driven by the rise in fertilizers and pesticides”, justified the Ministry of Economy. in note.

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