Circular No. 1045 - Economic Stabilization Program - Cruzado Plan - Financing for Acquisition of Goods and Services - Reduction of Term - Resolution 1147 of June 26, 1986

CIRCULAR NO. 001045

To
Investment Banks and Credit, Financing, and Investment Societies

We communicate that the Board of this Central Bank has decided to issue the following complementary norms to the provisions set forth in Resolution No. 1,147 of June 26, 1986.

2. The balances of operations for financing the acquisition of goods and services, taken at present value, which may somehow be linked to the following items, are subject to credit control:

a) under the "Financing" subgroup:

• DIRECT FINANCING TO THE USER

• FINANCING TO THE USER WITH INTERVENTION

• RIGHTS FROM ASSIGNMENT OF CREDIT

• OTHER FINANCING

b) under the "Refinancing" subgroup:

• REFINANCING OF INSTALLMENT SALES

c) under the "Doubtful Credits" subgroup:

• CREDITS IN LIQUIDATION

3. For the purposes of the provision in the preceding item, the following shall be considered:

a) when summing the values registered in the subgroups referred to above, the values recorded as "Rents to be Appropriated" shall be subtracted;

b) when summing the values registered in the "Doubtful Credits" subgroup, the corresponding provision shall not be subtracted;

c) liabilities arising from credits assigned to non-homologous institutions are included in credit control;

d) financing of debtor balances of credit card users, as well as those carried out without proof of the credit's direction, shall be computed as financing for the acquisition of goods and services.

4. Investment banks are prohibited, while the credit control established by Resolution No. 1,147 of June 26, 1986, persists, from acquiring credits from credit, financing, and investment societies without the co-obligation of the assigning institution.

5. Credit, financing, and investment societies may only finance the acquisition of new or used goods upon presentation of the first (1st) copy of the Invoice.

6. The following operations are not subject to the credit control provided for in Resolution No. 1,147 of June 26, 1986:

a) rural credit operations, carried out in accordance with Chapter 37 of the Rural Credit Manual (MCR);

b) working capital financing;

c) financing for inventory acquisition;

d) refinancing of leasing contracts or acquisition of credits related to these operations;

e) acquisition of credits not linked to financing for the purchase of goods and services.

7. The substitution of fiduciary alienation as security for financed goods based on the letters "a" and "b" of item I of Resolution No. 1,094 of February 20, 1986, is prohibited in favor of fiduciary alienation of goods mandatorily financeable over shorter terms.

8. Credit, financing, and investment societies shall have until July 20, 1986, to present to the Supervision Department (DEFIS) the breakdown of the items housing operations subject to credit control, in accordance with this Circular.

Brasília-DF, July 3, 1986

Luiz Carlos Mendonça de Barros
Director