ANNOUNCEMENT 27 May 2010

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 3,855 de 27/05/2010. Available at: http://www.bcb.gov.br/pre/normativos/busca/downloadNormativo.asp?arquivo=/Lists/Normativos/Attachments/49619/Res_3855_v1_O.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

Ministry of Agriculture, Fishing, and Livestock. Ministério da Agricultura, Pecuária e Abastecimento. Funcafé Relatorio de Atividade 2009. Available at: http://www.agricultura.gov.br/assuntos/politica-agricola/cafe/arquivos/RelatoriodeAtividadesdoFuncafeExercicio2009.pdf

Inception date: 27 May 2010 | Removal date: 28 Apr 2011

State loan

On 27 May 2010, the Brazilian Central Bank issued Resolution 3855 announcing the approval of BRL 2,088 million (USD 1,315 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 1,800 million (USD 984 million).

The credit lines were distributed as it follows:

  • BRL 313 million for funding;
  • BRL 522 million for harvest;
  • BRL 940 million for storage;
  • BRL 313 million for Coffee Acquisition Financing (FAC); 

The applicable interest rate ranged between 4.5% and 6.5%.

These amounts apply for the 2010 harvest.

AFFECTED SECTORS

 

AFFECTED PRODUCTS