ANNOUNCEMENT 02 Jun 2015

The Government of Brazil increased the budget allocated to 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 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

Government of Brazil. Governo do Brasil. "Conselho define proposta de distribuição do Funcafé" Available at: http://www.brasil.gov.br/economia-e-emprego/2014/02/conselho-define-proposta-de-distribuicao-do-funcafe

Inception date: 02 Jun 2015 | Removal date: 31 Mar 2016

State loan

On 2 June 2015, the National Monetary Council (CMN by its acronym in Portuguese) approved BRL 4,136 million (USD 1,317 million) for credit lines enclosed in the Fund for the Defense of the Coffee Economy ("Funcafé") for 2015. The new budget represents an increase when compared to 2014 when the total budget was BRL 3,825 million (USD 1,218 million).

The credit lines were distributed as it follows:

  • BRL 950 million for funding;
  • BRL 1,506 million for storage;
  • BRL 750 million for Coffee Acquisition Financing (FAC); 
  • BRL 10 million for options contracts and operations;
  • BRL 20 million for the recovery of damaged coffee plantations;
  • BRL 900 million for working capital limited to BRL 200 million for the soluble coffee industry, BRL 300 million for the coffee roasting industry and BRL 400 million for production cooperatives.

The offered interest rates ranged between 8.75% and 10.5%.

These amounts apply for the 2015 harvest.

AFFECTED SECTORS