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CMN sets rules for acquisition of rural property

Measure is valid for operations contracted under the Land and Agrarian Reform Fund (FTRA)

The National Monetary Council (CMN) decided in a meeting on Thursday (30) to adjust the rule that allows rural producers to contract financing for the acquisition of rural property under the resources of the Land Fund and Agrarian Reform (FTRA) in the amount of up to R $ 140,000.00. Within this credit limit, up to R $ 7,500.00 may be included for the payment of technical assistance and rural extension services (Ater), divided into 5 (five) annual installments of up to R $ 1,500.00. 

The repayment term is up to 25 years, with up to 36 months grace period. In addition, the financing of technical assistance may not occur if the borrower obtains it by other means or at no cost. These conditions shall apply from April 2018, and the financing installments shall be calculated by the Price system, where the installments are equal in value. 

However, financial institutions were having difficulty operating the credit line because, in the case of financing projects with 4 or 5 installments of Ater, the release of such installments after the grace period would change the amount of the financing installment. 

In view of this, the Council relaxed the number of installments to be released to pay technical assistance to "up to" 5, and established that, in financing projects with 3 or more installments, the third should be released until the first installment of the installment is amortized. financing, and that the amounts corresponding to any resources not released after the start of the amortization period should be discounted from the final installments. Thus, the value of the installment is preserved by the Price system without causing damage to the borrower. 

In addition, the CMN authorized financial institutions to contract, until 10/31/2019, under the conditions established in Resolution No. 4,177, dated 7/1/2013, the financing proposals approved by 3/29/2018, which means that the loans that are being processed in banks can be contracted under the conditions precedent to those defined in April 2018. Thus, it is avoided inconvenience to the borrowers who submitted their proposals within the period required by the then current norm, and that they are still depending on the release of the resources for the acquisition of your property. 

It is important to note that the proposals described above went through all stages of the National Land Credit Program, and therefore met the framework criteria and other rules required by the rules in force until March 29, 2018. Not contracting these operations would entail to families who have already mobilized for the purchase of land and who, as soon as possible, intend to start their enterprise.