President Luiz Inacio Lula da Silva signed this Friday (5), a Provisional Measure (MP) of rural debt renegotiation. It will be $ 12 billion to support up to 100,000 producers, especially small and medium farmers who have suffered from droughts and floods in recent years.
The Government’s goal with this MP is Provide more favorable conditions for indebted farmers to regularize their financial situation and maintain food production. In a video on social networks, Lula explained that renegotiation could be made by producers who have lost two harvests in the last five years.
“In recent years, prolonged droughts and strong floods have caused great losses to our farmers, generating debt and crashing to the preparation of the new crop. Therefore, I made the decision to give another warranty to the sector. The measure applies to small, medium and large producers with two crop losses in the last five years in municipalities that have decreed calamity twice during this period.”
According to the federal government, this renegotiation has the capacity to reach about 96% of small and medium farmers who are now defaulting or with extended debts.
>> Follow the channel of Brazil agency on WhatsApp
Understand
To join renegotiation, The producer needs to prove the crop losses In the last five years and be located in municipalities that have decreed a state of calamity at least twice during this period. The period of payment of the producers will be up to nine years, with a lack of one year.
The R $ 12 billion available will be passed on from the National Treasury to public banks, private and credit cooperatives, with BNDES in structuring. Interest rates will be lower than those practiced on the market. They will vary according to the size of the producer. About 6% per year for small, 8% for average and 10% for the others.
Credit limits range from R $ 250,000 in the National Family Farming Strengthening Program (Pronaf), up to R $ 1.5 million in the National Rural Producer Support Program (Pronamp) and R $ 3 million for other producers.
Regulation of the conditions will be defined by the National Monetary Council (CMN), responsible for establishing the final ceilings and parameters. Credit risk will be fully assumed by financial institutions, without transfer to the Treasury.
