Drought: Bill that renegotiates producers' debts awaits Dilma's approval.
President Dilma Rousseff has until the 17th to fully or partially approve Provisional Measure (MP) 618; the text was approved on Tuesday (1st) in the Senate and deals, among other things, with the renegotiation of debts of rural producers affected by the drought in the Northeast; according to provisions included in the MP, farmers and ranchers will be able to make new installments, extending deadlines and obtaining discounts in the negotiation.
Mariana Jungmann
Reporter from Agência Brasil
Brasilia - President Dilma Rousseff has until October 17 to fully or partially approve Provisional Measure (MP) 618. The text was approved yesterday (1st) in the Senate and deals, among other things, with the renegotiation of debts of rural producers affected by the drought in the Northeast.
According to provisions included in the Provisional Measure, farmers and ranchers will be able to make new payment plans, extending deadlines and obtaining discounts in the negotiation. The intention is to give them the means to settle their debts, since practically the entire harvest was lost due to weather problems.
The benefit applies to rural producers located within the area of operation of the Superintendency for the Development of the Northeast (Sudene) and in municipalities where a state of public calamity was declared between December 2011 and June 2013 due to drought. It is estimated that debts resulting from the loss of crops and livestock reach R$ 5 billion.
In the bill into which the provisional measure was converted, the original proposal for a R$ 15 billion capital injection was maintained to increase the share capital of Engenharia, Construções e Ferrovias SA (Valec) and allow the company to honor commitments to concessionaires that will operate sections of railways. The provisional measure also authorizes the Union to grant credit to the National Bank for Economic and Social Development (BNDES) in the amount of R$ 15 billion.
Editing: Fabio Massalli