ANNOUNCEMENT 31 Mar 2016

The Brazilian government increased the budget for the Coffee Economy Defense Fund credit lines known as "Funcafé".

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

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

Brazilian Central Bank. Banco Central do Brasil. Resolçao 4414 de 2 de Junho de 2015. Available at: http://www.bcb.gov.br/pre/normativos/busca/downloadNormativo.asp?arquivo=/Lists/Normativos/Attachments/48539/Res_4414_v1_O.pdf

Inception date: 31 Mar 2016 | Removal date: 31 Mar 2017

State loan

On 31 March 2016, the National Monetary Council (CMN by its acronym in Portuguese) approved BRL 4,632 million (USD 1.3 billion) for credit lines enclosed in the Fund for the Defense of the Coffee Economy ("Funcafé") for 2016. The new budget represents an increase when compared to 2015 when the total budget was BRL 4,136 million (USD 1.16 billion).

The credit lines were distributed as it follows:

  • BRL 950 million for funding;
  • BRL 1,752 million for storage;
  • BRL 1,000 million 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 2016 harvest.

AFFECTED SECTORS