Central Bank of Brazil Resolution Amending Rules on Foreign Loans and Their Registration

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 a session held on February 22, 2018, based on Articles 4 (items V and XXXI) and 57 of the aforementioned Law, in Law No. 4,131 of September 3, 1962, in Article 65, § 2 of Law No. 9,069 of June 29, 1995, and in Article 5, § 5 of Law No. 11,371 of November 28, 2006,

R E S O L V E D:

Art. 1 The Resolution No. 3,844 of March 23, 2010, shall enter into force with the following alteration:

“Art. 7 ...... ...... III - the renegotiation and assumption of an external loan operation, subject to registration with the Central Bank of Brazil, in accordance with Article 9 of the Annexed Regulation II.” (NR)

Art. 2 The Annexed Regulation II to Resolution No. 3,844 of 2010 shall enter into force with the following alterations:

“Art. 3 The costs and other conditions of the operations covered by this Regulation must maintain compatibility with those usually observed in international markets and be clearly defined in the registration, with undefined charges or charges linked, in an unlimited manner, to the financial results or to any form of business performance measurement of the borrower or third parties not being admitted.” (NR)

“Art. 4-A In the case of an external loan, contracted directly or through the issuance of securities, the borrower of the resources may appoint, as attorneys-in-fact, natural or legal persons authorized to include, consult, and update the registration.

§ 1 Financial institutions and other institutions authorized to operate by the Central Bank of Brazil may include and alter attorneys-in-fact provided they are duly authorized by the borrower of the external loan.

§ 2 The supporting documentation of the authorizations referred to in this article must be kept available to the Central Bank of Brazil for a minimum period of five years, counted from the date of closure of the respective authorizations.” (NR)

“Art. 6-A The financial transfers abroad covered by this Regulation are limited to the amount necessary to settle the principal of the debt, interest, and charges.” (NR)

“Art. 8 Resources entering the country regarding an external loan contracted directly or through the issuance of securities in the international market, regardless of the term of the operation, as well as operations for the acquisition, in the country, of privately placed debentures, are subject to registration, in accordance with this Regulation.” (NR)

“Art. 9 Once the entry of resources has occurred, changes to the maturity date or financial conditions (renegotiation) and the modification of the debtor (assumption) are the responsibility of the original borrower, who must effect them promptly in the RDE-ROF module, through a specific modality, giving credit to the original debt registration and constituting a new registration.” (NR)

Art. 3 Articles 13 and 14 of the Annexed Regulation II to Resolution No. 3,844 of 2010 are hereby repealed.

Art. 4 This Resolution enters into force on July 2, 2018.

Ilan Goldfajn
President of the Central Bank of Brazil