» Purpose

General

Implementation and maintenance of forests destined to industrial use; 

Restoration and maintenance of legal forest reserve and preservation areas; 

Implementation and maintenance of forest species for the production of wood destined to burning in the process of drying agriculture products; and 

Implementation of farmforestry projects (farming associated with forest) and agroforestry projects (agriculture associated with forest). 

Implementation and maintenance of oil palm forest, destined to biofuel production.

Economic

Contribute for the deficit reduction that exists in the planting of trees used as raw materials by factories; 

Develop the diversification of the productive activities in the rural area; 

Generate job and income separately; and 

Leverage the technological and commercial development of the sector, as well as the tax collection. 

From the environmental and social view, it aims at establishing the man in the rural area and reducing his migration to cities, through economic feasibility of small and medium properties and contributing for the preservation of native forests and remaining ecosystems.

The operations will be carried out through the accredited financial institutions.


» Clients

Rural producers (individuals or legal entities) and their associations or cooperatives. 


» Financeable Items

Fixed and semi-fixed investments, including those related to the exploration system called forest handling; 

Costs related to the investment project, limited to 35% of the investment value, related to the maintenance expenses in the second, third and fourth years; 

Expenses related to the own labor use, upon verification of resources application and presentation of technical assistance report. 

Implementation of sapling nurseries.

The credit destined to the recomposing and maintenance of legal reserve and preservation area may be granted when necessary for the development of farming activities in the respective property.


» Interest Rate

6.75% p.a., including the accredited financial institution's spread of 3% p.a.


» Share Level

Up to 100%. 


» Financing limit

Up to R$ 200 thousand per client within the period encompassing from 07.01.2008 to 06.30.2009.

It is permitted the granting of more than one financing to the same client within the period mentioned above, when the activity supported requires it and is proven the payment capacity of the client; and the sum of the granted amounts does not surpass the credit limit established for the Program.


» Maturity

– Up to 144 months, including the grace period up to the first cutting date, plus 6 months and restricted to 96 months, in the forest implementation and maintenance projects destined to the industrial use and timber originating destined to the burning in the drying process of agricultural products;

– Up to 144 months, included in the grace period up to 12 months, in the reforesting and maintenance of preservation areas and legal reserves;

– Up to 48 months, included in the grace period up to 18 months in other projects for implementation of sapling nurseries.
The principal payment intervals shall be made semiannually or annually, to be defined according to the funding receipt flow of the beneficial property.

The payment periodicity of the principal may be twice or once a year, to be defined according to the receiving flow of resources of the benefiting property. 


» Collaterals

The guarantees will remain at the criteria of the accredited financial institution, observing the relevant norms of the Brazilian Central Bank. 

The pledge of credit rights resulting from financial investments will not be accepted as a guarantee.

See: Guarantees


» Effectiveness

Up to 06/30/2009, subject to budget limits.


» Addressing

The interested party should proceed to the accredited financial institution of preference that will offer information on the necessary documentation, analyze the possibility for the granting of credit and negotiate the guarantees. After approval by the institution, the operation will be forwarded for confirmation and subsequent release of resources by the BNDES.


» See

Automatic BNDES