The Minister of Finance, Dario Durigan, and the President of the Chamber, Hugo Motta (Republicans-PB), stated this Wednesday (15) that they reached an agreement on the renegotiation of rural producers' debts. The understanding announced this Wednesday seeks to unlock a solution to the debt of producers affected by extreme weather events and economic difficulties. The topic was addressed in a project approved by the Senate, but without the support of the federal government. According to the Minister of Finance, with the agreement, producers who, between 2019 and 2025, recorded losses of at least 30% in gross income in two harvests, due to weather events or variations in agricultural prices, will be able to renegotiate debts under special conditions. The general rule provides for a payment period of eight years, with a two-year grace period. For producers with greater losses – of three harvests and loss of 40% of gross income – caused by climate events, especially in Rio Grande do Sul, the period could reach ten years.
Rural debts: Treasury and Chamber reach an agreement on renegotiation, with a 10-year term for those who suffered major crop losses
The Minister of Finance, Dario Durigan, and the President of the Chamber, Hugo Motta (Republicans-PB), stated this Wednesday (15) that they reached an agreement on the renegotiation of rural producers' debts. The...
"If you have three losses, the period goes to ten years. There are two years of grace period plus eight years to pay, without the need for a down payment," said Durigan. Rates will vary depending on the size of the producer According to the announced agreement, interest rates will differ depending on the size of the producer. For farmers who suffered losses resulting from climate events, the interest will be: 5% per year for Pronaf beneficiaries; 8% per year for Pronamp producers; 11% per year for large producers. In other situations covered by the agreement, including losses caused by price variations, the rates will be: 6% per year for Pronaf; 9% per year for Pronamp; 12% per year for larger producers. CPRs enter renegotiation One of the main new features announced by the government is the inclusion of Rural Product Certificates (CPRs) in renegotiations. According to Durigan, until the negotiations carried out in the Senate, the economic team did not accept including this type of operation, which has different rules than traditional rural credit lines. Now, CPR operations in arrears may initially be renegotiated with financial institutions within the same deadlines defined for other debts. "The farmer who, in addition to rural credit, used CPR, will also have an alternative for renegotiation", said the minister. Cooperatives will also be covered The agreement also provides for the participation of production cooperatives. According to the government, public banks, private institutions and credit cooperatives will be able to offer negotiated conditions to rural producers able to join the program. Guarantees Another point in the agreement deals with guarantees required by banks. The government informed that the guarantees presented in the original operations can be reused in renegotiations, reducing the need for producers to present new goods or additional guarantees. According to Durigan, the guidance is that financial institutions reevaluate contracts and require extra guarantees only when necessary. Change of position In June, after the bill was approved by the Senate without an agreement with the government, Durigan stated that the government could veto the proposal as it considered the measure's fiscal impact to be high. At the time, the Ministry of Finance estimated that the cost could reach R$140 billion if all eligible producers joined the refinancing. The proposal had been approved by senators without formal support from the Executive. The Minister of Finance, Dario Durigan, after meeting with the President of the Chamber and parliamentarians Reproduction/TV Globo
