2020-05-05 | Carta Circular 4043

Circular Letter No. 4043 - Amends Circular Letter No. 4,024 of April 9, 2020 Regarding Eligibility Criteria for Guarantees Linked to the Temporary Special Liquidity Line via Financial Letter Issuance

The Head of the Department of Financial System Monitoring of the Central Bank of Brazil amends Circular Letter No. 4,024 to update eligibility criteria for guarantees linked to the Temporary Special Liquidity Line. The revision clarifies that specific provisions of Circular No. 3,996 do not apply to certain operations and mandates institutions to observe additional requirements from that same circular. This Circular Letter enters into force on the date of its publication.

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The Head of the Department of Financial System Monitoring (Desig), in the exercise of the authority conferred by Article 23, item I, clause 'a', of the Internal Regulations of the Central Bank of Brazil, annexed to Ordinance No. 84,287 of February 27, 2015, based on Article 77, item III, and in view of the provisions of Resolutions Nos. 4,571 of May 26, 2017, and 4,795 of April 2, 2020, Circulars Nos. 3,870 of December 19, 2017, 3,996 of April 6, 2020, 4,004 of April 16, 2020, 4,007 of April 24, 2020, and 4,011 of April 28, 2020, and Circular Letter No. 3,869 of March 19, 2018,

RESOLVES:

Art. 1º Circular Letter No. 4,024 of April 9, 2020, shall enter into force with the following alterations:

“Art. 4º ...............................................................

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§ 1º The provisions of clause 'q' of item I shall not apply to the operations referred to in § 4º of Art. 2º of Circular No. 3,996 of 2020.

§ 2º Additionally, the institution shall observe the provisions of clauses 'p' and 'q' of item I, clauses 'b' and 'c' of item II, clauses 'b' and 'c' of item III, and § 1º of Art. 8º of Circular No. 3,996 of 2020.” (NR)

Art. 2º The sole paragraph of Art. 4º of Circular Letter No. 4,024 of April 9, 2020, is hereby repealed.

Art. 3º This Circular Letter enters into force on the date of its publication.

Gilneu Francisco Astolfi Vivan