ANNOUNCEMENT 26 Apr 2012

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

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

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

Ministry of Agriculture, Fishing, and Livestock. Ministério da Agricultura, Pecuária e Abastecimento. Funcafé Relatorio de Atividade 2012, p. 8,16. Available at: http://www.agricultura.gov.br/assuntos/politica-agricola/cafe/arquivos/RelatoriodeAtividadesdoFuncafe2012.pdf

Ministry of Agriculture, Fishing, and Livestock. Ministério da Agricultura, Pecuária e Abastecimento. Funcafé Relatorio de Atividade 2011, p. 18. Available at: http://www.cncafe.com.br/ba/file/Relat%C3%83%C2%B3rio%20de%20Atividades%20do%20Funcaf%C3%83%C2%A9%202011.pdf

Brazilian Central Bank. Banco Central do Brasil. Resoluçao 4,099 de 28 de Junho de 2012. Available at: http://www.bcb.gov.br/pre/normativos/busca/downloadNormativo.asp?arquivo=/Lists/Normativos/Attachments/49155/Res_4099_v1_O.pdf

Brazilian Central Bank. Banco Central do Brasil. Resoluçao 4,139 de 27 de Setembro de 2012. Available at: http://www.bcb.gov.br/pre/normativos/busca/downloadNormativo.asp?arquivo=/Lists/Normativos/Attachments/49102/Res_4139_v1_O.pdf

Inception date: 26 Apr 2012 | Removal date: 27 Sep 2012

State loan

On 26 April 2012, the National Monetary Council (CMN by its acronym in Portuguese) approved BRL 2,065 million (circa USD 1,094 million) for credit lines enclosed in the Fund for the Defense of the Coffee Economy ("Funcafé") for 2012. The new budget represents a decrease when compared to 2011 when the total budget was BRL 2,440 million (USD 1,292 million).

The credit lines were distributed as it follows:

  • BRL 500 million for funding;
  • BRL 900 million for storage;
  • BRL 250 million for Coffee Acquisition Financing (FAC); 
  • BRL 50 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 2012 harvest.

 
Update
On 28 June 2012, the Brazilian Central Bank issued Resolution 4099 increasing from BRL 500 million to BRAL 550 million the resources allocated to funding.

On 27 September 2012, the Brazilian Central Bank issued Resolution 4139 approving an increase in the resources allocated to storage (please, see related state acts). 

On 7 January 2013, the Brazilian Central Bank issued Resolution 4180 changing the resources allocated for funding and for options contracts and operations (please, see related state acts).

AFFECTED SECTORS