Starting in January, rural producers affected by weather events, pests or diseases will have more time to have their agricultural insurance applications approved. The National Monetary Council (CMN) increased from 45 to 90 days the period for analysis and judgment of requests for coverage of the Agricultural Activity Guarantee Program (Proagro). The agency also reduced the bureaucracy for the release of resources.
In a note, the Central Bank (BC) informed that the deadline was increased because the financial institutions that operate the program do not have the structure to process requests in situations that cause losses in large proportions.
According to the BC, the increase in the term will not mean delay in the approval of resources. This is because the new rule will simplify the processing of requests in the event of a significant increase in the volume of requests to cover losses. In case of events that cause high crop losses, the financial institution that operates Proagro may register the processes in the Rural Credit and Proagro Operations System (Sicor) after the regulatory deadlines, without prior authorization from the BC.
A program aimed at guaranteeing the payment of credit installments for the cost of agricultural production, Proagro works as an insurance that covers possible defaults caused by crop or production failures. The program contributes to the settlement of any cost debts.
