CMN authorizes banks to renegotiate rural debts.

The National Monetary Council (CMN) approved a resolution regulating Provisional Measure (MP) 1,376 of 2026, which deals with the renegotiation of rural debts. This action had been awaited since the publication of the MP last week, to operationalize producers' access to the debt restructuring line. The resolution authorizes financial institutions to operate the rural credit line aimed at renegotiation. However, it is not mandatory; that is, banks are free to decide whether or not to operate. Furthermore, the credit risk of the operations rests with the financial institutions themselves. The act maintains the already established guidelines, such as the differentiation of conditions for two groups of producers: General: producers who have suffered a loss of at least 30% in gross income in two or more harvests between 2019 and 2025. The cause of the losses may be adverse weather conditions or a reduction in market prices; Exceptional: producers who suffered a loss of at least 40% in gross income in three or more harvests between 2019 and 2025. In this case, the losses must be related only to adverse weather conditions. Another point regulated was the specifications related to proving the losses. The supporting report must be issued by a qualified professional registered with the Regional Council of Engineering and Agronomy (CREA), the Federal or Regional Council of Agricultural Technicians, the Regional Council of Veterinary Medicine (CRMV) or the Regional Council of Biology (CRBio). Banks may request a second report if they believe there are irregularities in the first report presented. In addition, the technical report must demonstrate a "direct relationship" between the losses and the operations that are in default, extended or renegotiated. The extraordinary meeting held this Thursday (23) also confirmed requests made by the sector, such as the inclusion of agricultural production cooperatives. The Provisional Measure (MP) did not establish a credit limit for cooperatives. The National Monetary Council (CMN) indicated that this ceiling is R$ 50 million, as requested by the Parliamentary Agricultural Front (FPA). Interest rates can vary between 11% and 12%, depending on the level of loss. The regulation officially set November 12th as the deadline for contracting loans. It also indicates the sources of funds that should be used, such as mandatory resources. There was also progress in the regulation of Rural Product Certificates (CPRs) debts. The MP already authorized banks to acquire new CPRs to settle defaulted certificates issued until December 31, 2025. The resolution authorizes these new CPRs to meet the eligibility requirements stipulated in the Rural Credit Manual. In this case, up to 5% of the resources raised through rural savings and up to 55% of the resources from Agribusiness Credit Letters (LCAs) can be used to acquire CPRs. "The line of credit that allows for the renegotiation of debts is the result of FPA involvement that began with Bill 5.122/2023. The legislative proposal made progress in the National Congress. However, the political understanding was that the matter would be vetoed by the federal government," says Senator Tereza Cristina, vice-president of the Parliamentary Agricultural Front (FPA). "It's not the ideal world, it's not what we wanted. We would very much like Bill 5.122/23 to be voted on. We worked hard for that, but it wasn't possible. We sought an understanding with the government," highlighted the president of the FPA, Deputy Pedro Lupion, pointing out that central themes were maintained in the provisional measure. With this political scenario and the urgency to resolve the problem, Provisional Measure 1.376 was the "possible agreement," as stated by the vice-president of the FPA, Senator Tereza Cristina (PP-MS). "The provisional measure solves the immediate problem because, with the existing Harvest Plan, many people would not be able to participate or access credit," he commented. 

This text was translated by machine from Brazilian Portuguese.