ANNOUNCEMENT 28 Apr 2011

The government of Brazil 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 3,968 de 28 de Abril de 2011. Available at: http://www.bcb.gov.br/pre/normativos/busca/downloadNormativo.asp?arquivo=/Lists/Normativos/Attachments/49414/Res_3968_v1_O.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

Ministry of Agriculture, Fishing, and Livestock. Ministério da Agricultura, Pecuária e Abastecimento. Funcafé Relatorio de Atividade 2010. Available at: http://www.agricultura.gov.br/assuntos/politica-agricola/cafe/arquivos/RelatoriodeAtividadesdoFuncafe2010versaofinal.pdf

Inception date: 28 Apr 2011 | Removal date: 26 Apr 2012

State loan

On 28 April 2011, the Brazilian Central Bank issued Resolution 3968 announcing the approval of BRL 2,290 million (circa USD 1,442 million) for credit lines enclosed in the Fund for the Defense of the Coffee Economy ("Funcafé") for 2011. The new budget represents an increase when compared to 2010 when the total budget was BRL 2,088 million (circa USD 1,315 million).

The credit lines were distributed as it follows:

  • BRL 600 million for funding;
  • BRL 300 million for harvest;
  • BRL 500 million for storage;
  • BRL 500 million for Coffee Acquisition Financing (FAC); 
  • BRL 50 million for marketing;
  • BRL 40 million for the recovery of damaged coffee plantations;
  • BRL 300 to finance debts originating in the rural financing for coffee.

These amounts apply for the 2011 harvest.

AFFECTED SECTORS

 

AFFECTED PRODUCTS