ANNOUNCEMENT 18 Jun 2013

The Brazilian government increased the total 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. Resoluçao 4229 de 18 de Junho de 2013. Available at: http://www.bcb.gov.br/pre/normativos/busca/downloadNormativo.asp?arquivo=/Lists/Normativos/Attachments/48929/Res_4229_v1_O.pdf

Ministry of Agriculture, Fishing, and Livestock. Ministério da Agricultura, Pecuária e Abastecimento. Funcafé Relatorio de Atividade 2013, p. 19. Available at: http://www.agricultura.gov.br/assuntos/politica-agricola/cafe/arquivos/RelatoriodeAtividadesdoFuncafe2013semISBN.pdf

Brazilian Central Bank. Banco Central do Brasil. Resoluçao 4068 de 26 de Abril de 2012. Available at: http://www.bcb.gov.br/pre/normativos/busca/downloadNormativo.asp?arquivo=/Lists/Normativos/Attachments/49209/Res_4068_v1_O.pdf

Inception date: 18 Jun 2013 | Removal date: 18 Feb 2014

State loan

On 18 June 2013, the National Monetary Council (CMN by its acronym in Portuguese) approved BRL 3,160 million (USD 1,459 million) for credit lines enclosed in the Fund for the Defense of the Coffee Economy ("Funcafé") for 2013. The new budget represents an increase when compared to 2012 when the total budget was BRL 2,855 million (circa USD 1,319 million).

The credit lines were distributed as it follows:

  • BRL 730 million for funding;
  • BRL 1,500 million for storage;
  • BRL 250 million for Coffee Acquisition Financing (FAC); 
  • BRL 10 million for options contracts and operations;
  • BRL 40 million for the recovery of damaged coffee plantations;
  • BRL 225 million for working capital limited to BRL 25 million for the soluble coffee industry and BRL 200 million for the coffee roasting industry;
  • BRL 100 to finance debts originating in the rural financing for coffee.

These amounts apply for the 2013 harvest.

AFFECTED SECTORS