Funcafé reaches R$4,9 billion already contracted by financial agents

There are already 29 financial institutions, including banks and credit unions, able to operate the financing lines of the Coffee Economy Defense Fund (Funcafé) this season, totaling R$4,991 billion, around 82% of the global value. Contract extracts are published in the Official Gazette of the Union (DOU). 

Another eight financial agents are in the final hiring phase. In total, Brazilian coffee growers will be able to access the Fund's R$6,058 billion in this 2022/2023 harvest in 37 banks and cooperatives.

The financial agents are: Banco Ribeirão Preto, Banco de Desenvolvimento de Minas Gerais-BDMG, Banco Inter, Banco Bradesco, Rabobank, Banco Sicoob, Banco Santander, Banco Fibra, Banco ABC, BNP Paribas, China Construction Bank, Banco Itaú, Banco Regional of Development of the Far South, Banco BTG Pactual, Banco Sicredi and Banco de Desenvolvimento do Espírito Santo, and credit cooperatives: Central Cresol, Credinter, Agrocredi, Credicarpa, Credialp, Credicarmo, Credivar, Central de Crédito do Espírito Santo, Sicoob Noroeste , Coopacredi, Credicopa and Crediminas, and Desenbahia-Agência de Fomento do Estado da Bahia.

The resources are disbursed by Funcafé as requested by financial agents. Of the R$4,991 billion contracted, R$1,652 have already been disbursed to financial institutions.

The available credit lines are intended for financing the cultivation of crops, storage, marketing and acquisition of the product, working capital for industries and production cooperatives, and also for the recovery of coffee plantations damaged by hailstorms, frost, windstorms or other climatic phenomena.

The available resources are distributed along the following lines:

I – funding credit: up to R$1,57 billion

II – commercialization credit: up to R$2,17 billion

III – Financing for Coffee Acquisition (FAC): up to R$ 1,38 billion 

IV – credit for working capital for instant coffee and coffee roasting industries and for production cooperatives: up to R$775 million

V – credit for the recovery of damaged coffee plantations: R$ 160 million

Funcafé's interest rate for this harvest is limited to 11%. The Fund's remuneration was established at 8%, maintaining the financial agent's remuneration at up to 3%, with free negotiation between the parties.