{"id":94303,"date":"2025-05-23T16:24:19","date_gmt":"2025-05-23T19:24:19","guid":{"rendered":"https:\/\/murray.adv.br\/?p=94303"},"modified":"2025-05-23T16:24:19","modified_gmt":"2025-05-23T19:24:19","slug":"heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months","status":"publish","type":"post","link":"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/","title":{"rendered":"Heeding banks, CMN cuts LCI and LCA minimum terms to six months"},"content":{"rendered":"
\n
\n
\n
Regulatory change takes effect immediately with resolution’s publication; banks had warned of potential funding shortages<\/strong><\/em><\/h6>\n<\/div>\n<\/div>\n
<\/div>\n
\n
\n
\n
\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

 <\/p>\n

05\/23\/2025 <\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n

\n
\n
\n
\n

Responding to pressure from financial institutions, Brazil\u2019s National Monetary Council (CMN) has shortened the minimum maturity term for agribusiness credit bills (LCAs) and real estate credit bills (LCIs) from nine to six months. The measure, which takes effect this Thursday with the publication of the resolution, follows warnings from banks about shrinking funding sources\u2014especially for the real estate sector\u2014as savings account withdrawals accelerate.<\/p>\n<\/div>\n

\n
\n

With the Selic benchmark interest rate elevated, demand for these tax-exempt instruments\u2014previously concentrated in private credit funds\u2014has surged throughout 2024. According to data compiled by B3 at Valor\u2019s request, the combined outstanding volume of LCIs and LCAs has reached R$1 trillion.<\/p>\n<\/div>\n

\n

In a statement, the Central Bank said the decision reflects the importance of these instruments for financing the real estate and agribusiness sectors. Until February 2024, the minimum maturity for LCIs was three months. That month, the CMN extended it to 12 months as part of broader changes to the rules governing tax-incentivized securities. The term for LCAs, which have a similar risk-return profile to LCIs, was increased from three to nine months. In August, following criticism, the CMN reduced the LCI term to nine months to correct the asymmetry. At the time, the Brazilian Association of Real Estate Credit and Savings Entities (Abecip) called the move positive but said a return to the three-month term would be ideal.<\/p>\n<\/div>\n

\n

Issuance volumes of LCIs and LCAs initially dropped after the changes\u2014from R$30.7 billion in January, near historic highs, to between R$11 billion and R$14 billion by September. LCAs, in particular, plummeted from R$45 billion to a range of R$21 billion to R$24 billion. By December, issuances rebounded to R$26.5 billion in LCIs and R$39.6 billion in LCAs, closing the year with an impressive R$392.6 billion and R$517.2 billion in total outstanding, respectively. This upward trend has continued in 2024, with monthly volumes hovering around R$25 billion for LCIs and R$31 billion for LCAs. As of the end of April, outstanding balances stood at R$560.4 billion in LCAs and R$440 billion in LCIs.<\/p>\n<\/div>\n

\n

Marilia Fontes, founding partner at Nord Investimentos, said the market has adapted to the longer terms of these income tax-exempt instruments for individuals. As a result, demand resumed even at the nine-month threshold. \u201cDefault rates haven\u2019t risen significantly, so banks continue lending to these sectors, which sustains issuance,\u201d she explained.<\/p>\n<\/div>\n

\n

She also pointed to the taxation of closed-end exclusive funds as a factor driving investors toward tax-exempt securities like incentivized debentures. Additionally, there has been a marked shift from equity and multimarket funds. \u201cThat\u2019s why we\u2019re seeing risk premiums narrow,\u201d Ms. Fontes said. In 2024, average returns stood at 95% of the CDI, but have since fallen to 85%-87% of the CDI.<\/p>\n<\/div>\n

\n

\u201cThe restriction last year was a step in the right direction, but it wasn\u2019t sufficient in an environment of uncertainty and high interest rates,\u201d said Mr. Jean-Pierre Cote Gil, credit portfolio manager at Vinland Capital.<\/p>\n<\/div>\n

\n
\n

The CMN also revised the issuance rules for agribusiness receivables certificates (CRAs), real estate receivables certificates (CRIs), and agribusiness credit rights certificates (CDCAs) to ensure the securities are used specifically for their target sectors. The resolution stipulates that they may not be backed by debt instruments where the debtor, co-debtor, or guarantor is \u201ca legal entity whose primary business activity is not in the real estate sector, in the case of CRIs, or in the agribusiness sector, in the case of CRAs and CDCAs.\u201d<\/p>\n<\/div>\n

*By\u00a0Gabriel Shinohara,\u00a0Liane Thedim\u00a0and\u00a0Rita Azevedo, Valor\u00a0\u2014 Bras\u00edlia, Rio de Janeiro, S\u00e3o Paulo<\/p>\n

Source: Valor International<\/p>\n

https:\/\/valorinternational.globo.com\/<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/article>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Regulatory change takes effect immediately with resolution’s publication; banks had warned of potential funding shortages         05\/23\/2025 Responding to pressure from financial institutions, Brazil\u2019s National Monetary Council (CMN) has shortened the minimum maturity term for agribusiness credit bills (LCAs) and real estate credit bills (LCIs) from nine to six months. The measure, […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8106],"tags":[26128],"class_list":["post-94303","post","type-post","status-publish","format-standard","hentry","category-murray-news","tag-regulatory-change"],"yoast_head":"\nHeeding banks, CMN cuts LCI and LCA minimum terms to six months - Murray Advogados<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Heeding banks, CMN cuts LCI and LCA minimum terms to six months - Murray Advogados\" \/>\n<meta property=\"og:description\" content=\"Regulatory change takes effect immediately with resolution’s publication; banks had warned of potential funding shortages         05\/23\/2025 Responding to pressure from financial institutions, Brazil\u2019s National Monetary Council (CMN) has shortened the minimum maturity term for agribusiness credit bills (LCAs) and real estate credit bills (LCIs) from nine to six months. The measure, […]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/\" \/>\n<meta property=\"og:site_name\" content=\"Murray Advogados\" \/>\n<meta property=\"article:published_time\" content=\"2025-05-23T19:24:19+00:00\" \/>\n<meta name=\"author\" content=\"Gelcy Bueno\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Gelcy Bueno\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/\"},\"author\":{\"name\":\"Gelcy Bueno\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\"},\"headline\":\"Heeding banks, CMN cuts LCI and LCA minimum terms to six months\",\"datePublished\":\"2025-05-23T19:24:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/\"},\"wordCount\":627,\"keywords\":[\"Regulatory change\"],\"articleSection\":[\"Murray News\"],\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/\",\"url\":\"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/\",\"name\":\"Heeding banks, CMN cuts LCI and LCA minimum terms to six months - Murray Advogados\",\"isPartOf\":{\"@id\":\"https:\/\/murray.adv.br\/en\/#website\"},\"datePublished\":\"2025-05-23T19:24:19+00:00\",\"author\":{\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\"},\"breadcrumb\":{\"@id\":\"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"In\u00edcio\",\"item\":\"https:\/\/murray.adv.br\/en\/home\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Heeding banks, CMN cuts LCI and LCA minimum terms to six months\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/murray.adv.br\/en\/#website\",\"url\":\"https:\/\/murray.adv.br\/en\/\",\"name\":\"Murray Advogados\",\"description\":\"PLG International Lawyers\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/murray.adv.br\/en\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e\",\"name\":\"Gelcy Bueno\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/murray.adv.br\/en\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g\",\"caption\":\"Gelcy Bueno\"},\"url\":\"https:\/\/murray.adv.br\/en\/author\/news\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Heeding banks, CMN cuts LCI and LCA minimum terms to six months - Murray Advogados","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/","og_locale":"en_US","og_type":"article","og_title":"Heeding banks, CMN cuts LCI and LCA minimum terms to six months - Murray Advogados","og_description":"Regulatory change takes effect immediately with resolution’s publication; banks had warned of potential funding shortages         05\/23\/2025 Responding to pressure from financial institutions, Brazil\u2019s National Monetary Council (CMN) has shortened the minimum maturity term for agribusiness credit bills (LCAs) and real estate credit bills (LCIs) from nine to six months. The measure, […]","og_url":"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/","og_site_name":"Murray Advogados","article_published_time":"2025-05-23T19:24:19+00:00","author":"Gelcy Bueno","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Gelcy Bueno","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/#article","isPartOf":{"@id":"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/"},"author":{"name":"Gelcy Bueno","@id":"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e"},"headline":"Heeding banks, CMN cuts LCI and LCA minimum terms to six months","datePublished":"2025-05-23T19:24:19+00:00","mainEntityOfPage":{"@id":"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/"},"wordCount":627,"keywords":["Regulatory change"],"articleSection":["Murray News"],"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/","url":"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/","name":"Heeding banks, CMN cuts LCI and LCA minimum terms to six months - Murray Advogados","isPartOf":{"@id":"https:\/\/murray.adv.br\/en\/#website"},"datePublished":"2025-05-23T19:24:19+00:00","author":{"@id":"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e"},"breadcrumb":{"@id":"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/murray.adv.br\/en\/heeding-banks-cmn-cuts-lci-and-lca-minimum-terms-to-six-months\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"In\u00edcio","item":"https:\/\/murray.adv.br\/en\/home\/"},{"@type":"ListItem","position":2,"name":"Heeding banks, CMN cuts LCI and LCA minimum terms to six months"}]},{"@type":"WebSite","@id":"https:\/\/murray.adv.br\/en\/#website","url":"https:\/\/murray.adv.br\/en\/","name":"Murray Advogados","description":"PLG International Lawyers","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/murray.adv.br\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/murray.adv.br\/en\/#\/schema\/person\/dd0d0bea46c2436124555d18c1a0d52e","name":"Gelcy Bueno","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/murray.adv.br\/en\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/1ef2acfe966d6deacdeccd2a24ea89192c41fd05fc60e57b79021358a47f5641?s=96&d=mm&r=g","caption":"Gelcy Bueno"},"url":"https:\/\/murray.adv.br\/en\/author\/news\/"}]}},"_links":{"self":[{"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/posts\/94303","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/comments?post=94303"}],"version-history":[{"count":2,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/posts\/94303\/revisions"}],"predecessor-version":[{"id":94305,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/posts\/94303\/revisions\/94305"}],"wp:attachment":[{"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/media?parent=94303"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/categories?post=94303"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/murray.adv.br\/en\/wp-json\/wp\/v2\/tags?post=94303"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}