Temer approves law that benefits sugar mill owners.
The interim government of Michel Temer has approved a law authorizing financing operations for sugar mills in the Northeast and other agricultural and livestock products exported through preferential quotas – such as sugar from Alagoas traded with the American market – based on the Export Guarantee Fund; the law ensures the participation of Alagoas sugar mills in the financing of approximately R$ 1,8 billion, which is being negotiated with Credit Swiss Bank.
Edivaldo Junior's Blog - The information was anticipated in the Mercado Alagoas column of Gazeta de Alagoas, this Wednesday, the 1st. The Minister of the Civil House, Eliseu Padilha, called Governor Renan Filho on Tuesday, the 31st, to inform him that the acting president, Michel Temer, had sanctioned MP 701.
The law authorizes financing operations for sugar mills in the Northeast and other agricultural and livestock products exported through preferential quotas (such as sugar from Alagoas traded with the American market), based on the Export Guarantee Fund.
Confirming the minister's information, the enactment of the law was published in the Official Gazette of the Union this Wednesday.
With the financing authorized, Renan Filho is expected to reinforce with business owners in the sector and directors of Asplana the commitment made to regularize the situation of suppliers with the sugar mills in Alagoas.
Negotiation
The financing operation is well advanced. The expectation is that the negotiation will be finalized in the coming days, with the contracts signed this month.
Despite being approved with vetoes, the law ensures the participation of sugar mills in Alagoas, including those in cooperatives, in the US$500 million financing – approximately R$1,8 billion – that is being negotiated with Credit Swiss Bank.
See the excerpt from the law that benefits the sugar mills in Alagoas.
"Article 5. The resources of the FGE may be used, with Export Credit Insurance, to cover guarantees of fulfillment of contractual obligations provided by a financial institution, in the form of performance guarantees, guarantees for reimbursement of advance payments, and guarantees of terms and conditions of offers, in export operations of:"
I – goods and services from industries in the defense sector;
II – agricultural products or their derivatives whose producer, at the time of contracting with the financial institution, is a beneficiary of tariff quotas for preferential markets;
III – livestock products or their derivatives whose producer is, at the time of contracting with the financial institution, a beneficiary of tariff quotas for preferential markets.
Sole paragraph. The coverage referred to in items II and III of the main clause includes, if applicable, exports carried out by a cooperative or exporting legal entity of which the producer is a member.