Government and Congress advance agreement to vote on rural debts

The federal government and parliamentarians linked to agribusiness advanced this Tuesday (26) in negotiations on PL (Bill) 5122/23, which deals with the renegotiation of rural debts. The text under discussion foresees changes in the classification criteria, withdrawal of the pre-salt FS (Social Fund) as a source of resources, up to two years grace period, a ten-year payment period and interest rates between 6% and 10%, depending on the producer's profile.

The expectation is that the final text will be finalized this evening for a vote on Wednesday (27) in the CAE (Economic Affairs Committee) of the Senate.

Rapporteur of the proposal, senator Renan Calheiros (MDB-AL) stated that the government and Congress are in the final phase of negotiations.

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"We are moving towards the conclusion of the negotiation. We are, as Senator Tereza says, in the final adjustments. We have suspended the meeting of the Economic Affairs Committee of the Federal Senate and tomorrow we intend to resume the meeting with the text agreed between the Legislative and the Executive", he said.

According to the senator, the changes under discussion do not alter the essence of the proposal previously approved by parliamentarians.

"It's a lot of technical stuff. It doesn't change much. There are a lot of technical things that are agreed upon. It's the ceiling, the framework for who will be able to get this resource, it's the guarantee fund, how it's going to be done. Anyway, these are technical things, they're final adjustments. But it doesn't change the essence of what's there in 5122," he said.

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Senator Tereza Cristina (PP-MS) said that the tendency is for the negotiated agreement to be incorporated directly into the project report, reducing the possibility of issuing an MP (Provisional Measure).

"The provisional measure would be a hypothesis, but moving forward with the text we will move towards including the negotiation in the 5122 project report", he stated.

According to the parliamentarian, the final text should remove the provision for using the FS (Social Fund) for the pre-salt, a point that faced resistance from the economic team.

"Some things will be removed, like the social fund, which is something the government didn't want from the beginning," he said.

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The federal deputy and leader of the government in the Chamber, Paulo Pimenta (PT-RS), stated that the objective is to complete the entire process in Congress by Thursday (28).

"The idea is to create a text that can be finalized today. By tonight the Senate will prepare a text, we will discuss this text again. The idea is that in the CAE tomorrow morning we will approve this text in the Senate and then approve it in the Chamber to conclude all this voting, at the latest by Thursday," he said.

According to Pimenta, the proposal provides for different renegotiation conditions depending on the producer's profile and the impact suffered by climate events.

"We are working on around two years of grace period, ten years of payment period. Basically, these are the two main parameters", he said.

He also stated that interest rates should vary depending on the size of the rural producer, with rates of 6%, 8% and 10%.

"The producer who meets all these criteria will have treatment. Farmers who do not meet these criteria will also have refinancing, but under other conditions", he stated.

According to parliamentarians, producers affected by two consecutive harvest losses caused by drought or floods will have more favorable conditions within the program.

The text must also provide for a staggering of the input required in the renegotiation, in addition to the creation of guarantee mechanisms to make operations viable.

Despite progress in negotiations, the government still avoided detailing this Tuesday (26) how the financing of the equalization of interest rates will be carried out. According to Pimenta, the resources must come from the National Treasury itself.

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Source: CNN