The federal government’s spending on renegotiation of debts of rural producers can reach R $ 17 billion. The information is from the secretary of the National Treasury, Mansueto de Almeida and was released by Agência Brasil.
The Agency informs that the resources for renegotiation must be financed by the Treasury and will serve to pay the banks the discounts given in fines and interest to the producers.
According to Almeida, if all debts are renegotiated with the maximum discounts of fine and interest, “the account could possibly reach R $ 17 billion.” He added: “Possibly, you will not renegotiate 100% of the debt in 4, 5 or 6 months, throughout the year, so you do not have the number closed.”
The renegotiation is provided for in Law 13606, which establishes the so-called Rural Tax Regularization Program to renegotiate debts with the Rural Workers’ Assistance Fund (Funrural). The fund provides for the payment of debts and special conditions of payment. In addition to the debts with Funrural, the law provides for the possibility of renegotiating debts with public banks.
READ TOO: Lack of budget halts renegotiation of rural debts, says Ministry of Finance
President Michel Temer even vetoed the bill partially on the grounds that some parts of the bill were at odds with the proposed fiscal adjustment, but vetoes were overturned by Congress.
With the overthrow of vetoes, family farmers were able to repackage their debts with Banco do Brasil, Banco do Nordeste and the National Bank for Economic and Social Development (BNDES). They will also have more deadlines to settle debts, for example, with the Development Offices of the Northeast (Sudene) and the Amazon (Sudam). The subsidies will be financed by the National Treasury.