O National Bank for Economic and Social Development (BNDES) announced that it has reopened last weekrenegotiation of operations contracted under federal government agricultural programs operated with BNDES funds. Renegotiations were suspended since the beginning of the year, due to the replacement of the Long-Term Interest Rate (TJLP) with the Long-Term Rate (TLP).
According to the state bank, the measure was authorized after the publication of an ordinance by the Ministry of Finance which authorizes BNDES to renegotiate, from 2018, rural operations originally contracted in TJLP until December 31, 2017. Since the publication of the Ordinance, BNDES has worked to implement in its information technology systems the new conditions of the renegotiation line, especially in relation to the procedures necessary for the equalization of interest rates with the Ministry of Finance.
Producers may only renegotiate each operation up to twice during its term. The installments with maturity in the calendar year may be renegotiated and the final maturity of the agreement extended by up to one year, with the remaining financial conditions being agreed. Requests for renegotiation must be accompanied by technical information enabling BNDES accredited banks to prove the reasons for the inability to pay and its impact on the income of the rural producer.
This text was translated by machine from Brazilian Portuguese.