ANNOUNCEMENT 28 Mar 2018

The Brazilian government increased the budget for Funcafé credit lines.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Ministry of Agriculture, Livestock and Farming. Ministério da Agricultura, Pecuária e Abastecimento. Notícias "Governo aprova recursos para linhas de crédito do Funcafé". Available at: http://www.agricultura.gov.br/noticias/governo-aprova-recursos-para-linhas-de-credito-do-funcafe-2

Brazilian Central Bank. Banco Central do Brasil. Resoluçao 4562 de 31 de Março de 2017. Available at: http://www.bcb.gov.br/pre/normativos/busca/downloadNormativo.asp?arquivo=/Lists/Normativos/Attachments/50357/Res_4562_v1_O.pdf

Inception date: 28 Mar 2018 | Removal date: 31 Dec 2018

State loan

On 28 March 2018, the National Monetary Council (CMN by its acronym in Portuguese) approved BRL 4.96 billion (circa USD 1.49 billion) for credit lines enclosed in the Fund for the Defense of the Coffee Economy ("Funcafé") for 2018. The new budget represents an increase when compared to 2017 when the total budget was BRL 4.89 billion (USD 1.46 billion).

The credit lines were distributed as it follows:

  • up to BRL 1.1 billion for funding;
  • BRL 1.862 billion for storage;
  • BRL 1.063 billion for Coffee Acquisition Financing (FAC); 
  • BRL 10 million for the recovery of damaged coffee plantations;
  • BRL 925.2 million for working capital limited to BRL 200 million for the soluble coffee industry, BRL 300 million for the coffee roasting industry and BRL 425.2 million for production cooperatives.

These amounts apply for the 2018 harvest.

AFFECTED SECTORS