ANNOUNCEMENT 31 Mar 2017

The government of Brazil decreased the budget for Funcafé credit lines.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Brazilian Central Bank. Banco Central do Brasil. Resolçao 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

Brazilian Central Bank. Banco Central do Brasil. Resolçao 4472 de 31 de Março de 2016. Available at: http://www.bcb.gov.br/pre/normativos/busca/downloadNormativo.asp?arquivo=/Lists/Normativos/Attachments/50175/Res_4472_v1_O.pdf

Inception date: 31 Mar 2017 | Removal date: 28 Mar 2018

State loan

On 31 March 2017, the National Monetary Council (CMN by its acronym in Portuguese) approved BRL 4.360 billion (USD 1.38 billion) for credit lines enclosed in the Fund for the Defense of the Coffee Economy ("Funcafé") for 2017. The new budget represents a decrease when compared to 2016 when the total budget was BRL 4.632 billion (USD  1.46 billion).

The credit lines were distributed as it follows:

  • BRL 1.01 billion for funding;
  • BRL 1.862 billion for storage;
  • BRL 1.063 billion for Coffee Acquisition Financing (FAC); 
  • BRL 425.2 million for production cooperatives.

These amounts apply for the 2017 harvest.

AFFECTED SECTORS