Regulatory Alerts2020-04-06 | Resolução CMN 4800CMN Resolution No. 4800 - Credit Operations for Payroll Financing under the Emergency Employment Support Program
The Central Bank of Brazil, via the National Monetary Council, issued Resolution No. 4800 to regulate credit operations for payroll financing under the Emergency Employment Support Program established by Provisional Measure No. 944. The resolution permits financial institutions to finance payrolls for eligible businesses with annual revenues between R$360,000 and R$10 million, subject to specific loan terms including a 3.75% annual interest rate and a 36-month term with a six-month grace period. It further establishes provisions for BNDES resource transfers, risk-based provisioning requirements, and mandatory internal audit inclusion for these operations.
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