CMN Resolution No. 4800 - Credit Operations for Payroll Financing under the Emergency Employment Support Program

The Central Bank of Brazil, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in an extraordinary session held on April 6, 2020, based on Articles 4, items VI, VIII, and XII, of the aforementioned Law, and Article 15 of Provisional Measure No. 944 of April 3, 2020,

R E S O L V E S:

Article 1. Financial institutions may participate in the Emergency Employment Support Program, in accordance with Provisional Measure No. 944 of April 3, 2020, and this Resolution.

Article 2. The institutions mentioned in Article 1 that participate in the Emergency Employment Support Program may finance the payroll of entrepreneurs, business corporations, and cooperative societies, excluding credit societies, provided that:

I - the respective payroll is processed by the financial institution, in accordance with Resolution No. 3,402 of September 6, 2006;

II - the annual gross revenue of the financed entities must be greater than R$360,000.00 (three hundred and sixty thousand reais) and equal to or less than R$10,000,000.00 (ten million reais), calculated based on the 2019 fiscal year.

Sole Paragraph. For the purpose of calculating the gross revenue of eligible persons under item II of the caput, financial institutions must consider the concept of economic group as defined in their credit policy.

Article 3. Credit operations contracted within the scope of the Emergency Employment Support Program must observe the following conditions:

I - the amount to be financed will cover the entire payroll of the persons mentioned in Article 1, as contractors, for a period of 2 (two) months, limited to the value equivalent to up to 2 (two) times the minimum wage per employee in each processed payroll;

II - the total term must be 36 (thirty-six) months, of which the first 6 (six) will be a grace period;

III - the interest rate must be 3.75% p.a. (three and seventy-five hundredths percent per annum); and

IV - the outstanding balance and due installments of the credit operation must be calculated according to:

a) the French Amortization System (Price Table) monthly, with an annual calculation base of 360 (three hundred and sixty) days; or

b) the Constant Amortization System (SAC) monthly, with an annual calculation base of 252 (two hundred and fifty-two), 360 (three hundred and sixty), or 365 (three hundred and sixty-five) days.

Sole Paragraph. The credit operations referred to in the caput may be formalized by financial institutions through instruments signed digitally or electronically.

Article 4. The National Bank for Economic and Social Development (BNDES), through a prior contractual instrument of adherence with the participating financial institution, may transfer Union resources to this participant to cover credit operations contracted with own resources prior to the filing of the operation at BNDES.

§ 1. In the contractual instrument of adherence referred to in the caput, BNDES must provide for maximum values that may be transferred to the participating financial institution, observing the global limit of resources effectively transferred to BNDES by the Union and available for the execution of the Emergency Employment Support Program.

§ 2. The credit operations referred to in the caput must:

I - adhere to all conditions established in Provisional Measure No. 944 of 2020 and this Resolution; and

II - be formalized on a date subsequent to the entry into force of this Resolution.

§ 3. Provided that the provisions of § 1 are observed, the credit operation filed at BNDES:

I - will follow all regulations established for operations granted within the scope of the Emergency Employment Support Program, including regarding the constitution of provisions to cover probable losses, as set forth in Article 5 of this Resolution; and

II - BNDES will transfer Union resources to participating financial institutions remunerated at a fixed rate of 3.75% p.a. (three and seventy-five hundredths percent per annum), considering as the initial term the date of formalization of the credit operation contract informed to BNDES by the participating financial institution.

§ 4. If the operation does not meet the provisions of this article, it will not be considered carried out within the scope of the Emergency Employment Support Program and must observe all current regulations applicable to credit operations.

Article 5. The institutions mentioned in Article 1 must apply the percentages defined in Article 6 of Resolution No. 2,682 of December 21, 1999, for the constitution of provisions to cover probable losses of operations carried out under the auspices of the Emergency Employment Support Program, only on the portion of credit whose credit risk is assumed by the institutions.

Article 6. The institutions mentioned in Article 1 must disclose in an explanatory note the classification by risk level of the operations referred to in Article 5, accompanied by the amount of the provision constituted for each level.

Sole Paragraph. The provisions of the caput apply only starting from the annual financial statements relating to the year 2020.

Article 7. The institutions mentioned in Article 1 must include the credit operations carried out within the scope of the Emergency Employment Support Program in the scope of the annual internal audit plan and the annual internal audit report, prepared in accordance with current regulations.

Sole Paragraph. The provisions of the caput apply, inclusive, to the plan and report relating to the 2020 fiscal year.

Article 8. This Resolution enters into force on the date of its publication.

Roberto de Oliveira Campos Neto President of the Central Bank of Brazil