URGENCY DECREE
NICE 089-2020
URGENCY DECREE THAT AMENDS URGENCY DECREE Nº 082-2020, Urgency Decree that dictates complementary measures aimed at financing small agricultural producers in the agricultural sector to reduce the impact of COVID-19 and other measures
THE PRESIDENT OF THE REPUBLIC
WHEREAS:
That, through Emergency Decree No. 082-2020, Emergency Decree that dictates complementary measures aimed at financing small agricultural producers in the Agrarian Sector to reduce the impact of COVID-19 and other measures, extraordinary measures were established, in economic matters and financial, in order to promote financing for small agrarian producers (farmers), who are affected by the adverse international and local context, as a result of the spread of COVID-19 in the national territory; through credits exclusively for the farmer’s working capital, in order to guarantee the 2020-2021 agricultural campaign, influencing the supply of food at the national level;
That, through number 2.1 of article 2 of the aforementioned Emergency Decree, the National Government Guarantee Program for Business Agricultural Financing (FAE-AGRO) is created, in order to guarantee credits for working capital of farmers who carry out family farming as defined by Law No. 30355, Law for the Promotion and Development of Family Farming, in order to ensure the 2020-2021 agricultural campaign, as well as the supply of food at the national level;
That, it is necessary to make modifications to the Emergency Decree No. 082-2020, in aspects related to the granting of the Guarantee of the National Government and its administration, considering that the FAE-AGRO program grants guarantees that ensure the recovery of the line of financing granted To the Companies of the Financial System (ESF) or Savings and Credit Cooperatives not authorized to capture resources from the public that are in the National Registry of Savings and Credit Cooperatives Not Authorized to Capture Resources from the Public by the Superintendency of Banking, Insurance and Private Pension Fund Administrators (COOPAC), which does not imply the securitization of said financing, so the appropriate vehicle to fulfill said purpose is a guarantee trust;
That, in addition, it is necessary to make details of the National Government Guarantee Program for Business Agrarian Financing (FAE-AGRO), created by Emergency Decree No. 082-2020, in aspects related to the Securitization Trust within the framework of said Program, whose purpose is to provide the Corporación Financiera de Desarrollo SA (COFIDE), a generic financial tool that allows the incorporation of credits that have sovereign guarantees into a legal-financial structure that provides solidity and predictability to their monetary value and thus access to cheaper sources of financing in favor of the final beneficiaries of said instruments;
In use of the powers conferred by subsection 19 of article 118 of the Political Constitution of Peru;
With the approving vote of the Council of Ministers; and,
In charge of reporting to the Congress of the Republic:
DECREES:
Article 1. Purpose
The purpose of this Emergency Decree is to modify Emergency Decree No. 082-2020, Emergency Decree that dictates complementary measures aimed at financing small agricultural producers in the Agrarian Sector to reduce the impact of COVID-19 and other measures.
Article 2. Modification of article 5, numerals 8.2 and 8.3 of article 8, numeral 17.1 of article 17 and numeral 1 of the Second Final Complementary Provision of Emergency Decree No. 082-2020
Modify article 5, numerals 8.2 and 8.3 of article 8, numeral 17.1 of article 17 and numeral 1 of the Second Final Complementary Provision of Urgency Decree No. 082-2020, Urgency Decree that dictates complementary measures destined to the financing of small agricultural producers in the Agrarian Sector to reduce the impact of COVID-19 and other measures, which are drafted with the following texts:
“Article 5. Resource channeling contract
ESFs supervised by SBS and COOPACs that access the COFIDE credit facility enter into a resource channeling agreement with COFIDE. ”
“Article 8. Administration of the FAE-AGRO and guarantee granted to credits through Guarantee Trust
(…)
8.2 The National Government Guarantee referred to in Article 2 is granted through a Guarantee Trust structured with COFIDE, which contains credits granted by COFIDE to the ESF and the COOPAC.
8.3 For the purposes of the provisions of the preceding paragraph, the General Directorate of the Public Treasury of the Ministry of Economy and Finance is authorized to sign, as trustor and trustee, a guarantee trust agreement with COFIDE, which must be approved by means of a Ministerial Resolution of the Ministry of Economy and Finance, within a period of no more than five business days from the entry into force of the FAE-AGRO Operating Regulations, taking into account the proposal for a guarantee trust contract sent by the Ministry of Agriculture and Irrigation.
The Ministry of Economy and Finance establishes a commission for the granting of the National Government Guarantee. Said commission is transferred by the trustee to the main account of the Public Treasury.
(…).”
“Article 17. Authorization for COFIDE to act as a securitization company and as an originator in a securitization trust.
17.1 COFIDE is authorized to act as a securitization company in relation to the securitization processes of the credit portfolios originated by COFIDE within the framework of the FAE-AGRO. The aforementioned securitization processes are carried out in order to have representative titles of the credits granted to the ESF or COOPAC within the framework of the FAE-AGRO.
(…).”
“FINAL SUPPLEMENTARY PROVISIONS
(…)
Second. Authorization for COFIDE to act as a securitization company and as originator in a securitization trust
1. COFIDE be authorized to act as a securitization company in relation to the securitization processes of the credit portfolios originated by COFIDE within the framework of: (i) Business Support Fund for MYPE, created by Emergency Decree No. 029- 2020 and its amendments; and, (ii) Business Support Fund for the MYPE of the Tourism Sector, created through Emergency Decree No. 076-2020. The aforementioned securitization processes are carried out in order to carry out reporting operations on the loan portfolios.
(…).”
Article 3.- Endorsement
This Emergency Decree is endorsed by the President of the Council of Ministers, the Minister of Economy and Finance and the Minister of Agriculture and Irrigation.
Complementary provision
Repeal
Only. Repeal of numbers 8.6, 8.8 and 8.10 of article 8 of Emergency Decree No. 082-2020
Repeal numbers 8.6, 8.8 and 8.10 of article 8 of Emergency Decree No. 082-2020, Emergency Decree that dictates complementary measures aimed at financing small agricultural producers in the Agrarian Sector to reduce the impact of COVID-19 and other measures .
Given in the Government House, in Lima, on the twenty-eighth day of the month of July of the year two thousand and twenty.
MARTÍN ALBERTO VIZCARRA CORNEJO
Republic President
PEDRO ÁLVARO CATERIANO BELLIDO
President of the Council of Ministers
MARÍA ANTONIETA ALVA LUPERDI
Minister of Economy and Finance
JORGE LUIS MONTENEGRO CHAVESTA
Minister of Agriculture and Irrigation
1873877-2
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