Regulatory Alerts2020-07-21 | Resolução CMN 4838Resolution CMN No. 4838 - Governs Credit Operations under the Working Capital Program for Business Preservation
The Central Bank of Brazil, via National Monetary Council Resolution No. 4838, establishes the rules for credit operations under the Working Capital Program for Business Preservation (CGPE) for authorized financial institutions. The resolution mandates that these loans, contracted by December 31, 2020, must have a minimum term of 36 months and a 6-month grace period, with strict prohibitions on restricting borrower discretion or applying funds to pre-existing debts. Additionally, it imposes distribution quotas requiring at least 50% of total contracted value to go to companies with gross revenue under R$100 million and caps allocations to larger entities.
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