The Federal Government published Provisional Measure 1.247/2024. It aims to grant discounts for settlement or renegotiation of installments of rural credit operations. The measure assists producers in Rio Grande do Sul who suffered material losses due to the rains between April and May this year. The authorization is valid for municipalities with a state of public calamity or emergency recognized by the federal Executive.
The Minister of Agriculture and Livestock, Carlos Fávaro, highlighted the importance of the measure. "We are working towards the reconstruction of agriculture in Rio Grande do Sul. The MP comes to provide more agility in this government support. Producers will be able to have new perspectives to fulfill their commitments and produce with peace of mind", stated Fávaro.
The MP grants an economic subsidy in the form of a discount to producers with losses equal to or greater than 30%. This includes producers whose installments were contracted until April 15th of this year and expire between May 1st and December 31st, 2024. For rural industrialization credit operations, the discount will apply to operations contracted within the scope of Pronaf. The producer must be part of the credit operation and prove material losses from agro-industrial production.
Operations contracted by agricultural production and industrialization cooperatives within the scope of Pronaf will be analyzed by a commission established by the Ministries of Finance (MF), Agriculture and Livestock (Mapa) and Agrarian Development and Family Farming (MDA). The analysis will be carried out for producers with losses equal to or greater than 60%.
The percentage of losses declared by the producer must be validated by the Municipal Council for Sustainable Rural Development (CMDRS). If the CMDRS is not operational, validation can be carried out by a similar body. Credit operations in default will be subject to the settlement or regularization of overdue and unpaid installments by May 1, 2024.
The costs resulting from granting the discount and renegotiating equalized operations will be assumed by the Union. The measure respects the limit of specific budgetary and financial availability for this purpose. The MP also authorizes an increase of up to R$500 million in the Federal Government's participation in the Investment Guarantee Fund (FGI). "The guarantee fund provides liquidity, so that the producer has coverage for the contracted operations. And this guarantee fund, you can be sure, will act as the driving force for the economy to get back up and running", explained Fávaro.
The minister also highlighted the Federal Government's commitment to supporting Rio Grande do Sul. The measure aims to bring a breath of fresh air to rural producers. Fávaro clarified that the next step is the publication of the MP regulations, which should be published by Decree in the next few days.
The full text of Provisional Measure 1.247/2024:
Art. 1º The federal Executive Branch is authorized to grant economic subsidies, in the form of a discount for settlement or renegotiation of installments of rural credit operations for funding, investment and industrialization, to borrowers whose expected income from the enterprise or whose value of goods and services financed projects have suffered losses equal to or greater than 30% (thirty percent), as a result of the extreme weather events that occurred in the State of Rio Grande do Sul, in the months of April and May 2024, in accordance with the provisions of Legislative Decree No. 36 , of May 7, 2024, observing the following:
I - the installments of rural credit operations contracted with controlled resources fall within the provisions of this article:
a) that mature between May 1st and December 31st, 2024, provided that the operation was contracted by April 15th, 2024 and the resources were released to the borrower, in whole or in part, prior to May 1st, 2024. XNUMX;
b) whose financed projects are located in the Municipalities of the State of Rio Grande do Sul with a state of public calamity or emergency situation recognized by the federal Executive Branch until the date of publication of this Provisional Measure;
c) for industrialization rural credit operations, the discount for settlement or renegotiation will only apply to operations contracted within the scope of the National Program for Strengthening Family Agriculture - Pronaf and provided that the borrower is part of the credit operation and proves material losses referring to the production of the agro-industrial unit, individual, group or collective; It is
II - operations or installments of rural credit do not fall within the provisions of this article:
a) settled or amortized prior to the date of publication of this Provisional Measure;
b) included in the Agricultural Activity Guarantee Program - Proagro or covered by any insurance for goods and rural production;
c) whose enterprise was carried out without complying with the conditions of the Agricultural Zoning of Climate Risk Ordinances - Zarc, when indicated;
d) contracted to pay shares in agricultural production cooperatives; It is
e) debts arising from renegotiated operations in the manner provided for in art. 5th of Law No. 9.138, of November 29, 1995, or in Resolution No. 2.471, of February 26, 1998, of the National Monetary Council, renegotiated or not, in accordance with the provisions of Law No. 10.437, of April 25, 2002 .
§ 1 Operations contracted by agricultural production cooperatives, in any of the lines provided for in the caput, and the industrialization operations contracted within the scope of Pronaf will be analyzed by the commission referred to in art. 3rd, observing the provisions of this article and art. 2nd.
§ 2 To grant the benefit, the percentage of losses declared by the borrower must be validated by the Municipal Council for Sustainable Rural Development - CMDRS and, in cases where the CMDRS is not operational, validation may be carried out by a similar collegiate body.
§ 3 The discount percentage granted will be established by decree and may be conditioned on the presentation of a technical report.
§ 4º The discount will use the lowest percentage of losses between that declared by the borrower and that determined in the technical report provided for in § 3º, when applicable.
Art. 2º The discount percentages and limits per borrower, the deadlines for receiving and analyzing operations and the additional conditions for adhesion and implementation of the discounts for settlement or renegotiation provided for in this Provisional Measure will be defined in a decree.
Single paragraph. The granting of the discount for credit operations in default will be subject to the settlement or regularization of the overdue and unpaid installments relating to the period prior to May 1, 2024, in which case you will not be entitled to the discount referred to in this Measure. Provisional.
Art. 3º The federal Executive Branch will establish a commission, whose rules will be regulated by a joint act of the Minister of State for Finance, the Minister of State for Agrarian Development and Family Farming and the Minister of State for Agriculture and Livestock, to analyze requests for discounts on contracted operations by agricultural production cooperatives or those covered by the provisions of art. 1st and art. 2nd, of borrowers whose expected income from the enterprise financed by the cost or industrialization credit or the asset or activity financed by the investment credit has had a loss equal to or greater than 60% (sixty percent), due to landslides or strength of the waters in the flood, respecting the provisions of art. 4th and noted that:
I - the commission will analyze the processes for proving losses, evaluating requests, percentages and discount limits, among other aspects to fulfill its responsibilities;
II - exceptionally, as long as the framework requirements are met, the discount granted by the commission may cover investment credit installments due in 2025, subject to the discount limits per borrower defined by decree;
III - the commission may grant discounts lower than the amount requested by the borrower; It is
IV - the commission may deliberate in cases provided for in decree.
Art. 4º The borrower of the credit operation will only opt for one of the discount modalities to be established by decree.
Art. 5º The costs resulting from the granting of the discount and the renegotiation of equalized operations, in accordance with the provisions of this Provisional Measure, will be assumed by the Union, within the limit of the specific budgetary and financial availability for this purpose, observing that the act of the Minister of State for Finance will establish the standards and conditions for granting and reimbursing the discount and equalization payment for the renegotiated operations under its responsibility referred to in this Provisional Measure.
Art. 6º Credit operations carried out with resources from state or municipal funds do not fall within the provisions of this Provisional Measure.
Art. 7º The beneficiary who omits or provides untrue information regarding the rural credit operations covered by this Provisional Measure must return the discount amounts received, in compliance with the provisions of art. 6th of Law No. 8.427, of May 27, 1992, and will be subject to the determination of civil, administrative and criminal liabilities.
Art. 8º The settlement or renegotiation of credit operations entitled to the discount referred to in this Provisional Measure must be granted to the borrower by December 31, 2024, subject to contractual repayment deadlines.
Art. 9º Law No. 14.042, of August 19, 2020, comes into force with the following changes:
"Art. 1º-C Without prejudice to the provisions of article 4º, the Union is authorized to increase, by up to R$ 500.000.000,00 (five hundred million reais), its participation in the Investment Guarantee Fund - FGI, by through the additional subscription of shares in the segregated assets provided for in art. 4, § 1, item II, exclusively to cover operations contracted within the scope of Peac-FGI Crédito Solidário RS linked to the financing lines with resources from the Social Fund covered by it. Article 47-A of Law No. 12.351, of December 22, 2010.
§ 1 The increase in participation referred to in the caput of this article is authorized, regardless of the limits established in art. 4th and those in the caput of art. 7th and in the caput of art. 8th of Law No. 12.087, of November 11, 2009, by act of the Minister of State for Development, Industry, Commerce and Services.
§ 2nd Joint act of the Minister of State for Development, Industry, Commerce and Services and the Minister of State for Finance will provide for the allocation of resources, credit conditions, maximum guarantee limits, income or revenue limits of beneficiaries, the participation criteria of financial institutions and other eligibility criteria for financing operations with resources from the Social Fund referred to in art. 47-A of Law No. 12.351, of December 22, 2010, for guarantee with FGI resources.
§ 3º The amounts mentioned in the caput that are not used, until December 31, 2027, to guarantee active operations will be returned to the Union, through redemption of quotas, until the sixtieth day following the date of issuance of the independent audit opinion of the FGI referring to the year 2027, in accordance with the provisions of the Fund’s statute.
§ 4 From January 1, 2028, the values referred to in the caput that are not committed to the guarantees granted will be returned annually to the Union, through redemption of quotas, until the sixtieth day following the date of issuance of the independent audit opinion of the FGI , referring to the year in which there is no commitment to guarantees granted, in accordance with the provisions of the Fund's statute." (NR)
Art 10. This Provisional Measure comes into force on the date of its publication.
Brasília, July 31, 2024; 203rd of Independence and 136th of the Republic.
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