Circular No. 1773 - Prohibition on Repo Operations Involving Debentures Issued From This Date and Amendment of Limits for Such Operations

CIRCULAR NO. 001773

TO
INSTITUTIONS AUTHORIZED TO CONDUCT REPO OPERATIONS

PROHIBITS THE CONDUCT OF REPO OPERATIONS WHEREBY THE OBJECT IS DEBENTURES ISSUED FROM THIS DATE AND AMENDS THE LIMITS FOR THE CONDUCT OF SUCH OPERATIONS.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A SESSION HELD ON 10.07.90, BASED ON THE PROVISIONS OF
ARTICLE 1 OF RESOLUTION NO. 1,728, OF 10.07.90, AND ARTICLE 30 OF THE REGULATIONS ATTACHED
to Resolution No. 1,088, of 30.01.86, DECIDED:

ART. 1. PROHIBIT THE CONDUCT OF REPO OPERATIONS WHEREBY THE OBJECT IS DEBENTURES ISSUED FROM THIS DATE.

SINGLE PARAGRAPH. DEBENTURES ISSUED PRIOR to this date may continue to be the object of the conduct of REPO OPERATIONS FOR, AT MOST, 2 (TWO) YEARS COUNTING FROM THE DATE OF ENTRY INTO FORCE OF THIS CIRCULAR.

ART. 2. ESTABLISH THE FOLLOWING LIMITS FOR THE CONDUCT OF REPO OPERATIONS:

I - INSTITUTIONS AUTHORIZED UNDER ARTICLE 7 OF THE CITED REGULATIONS - UP TO 10 (TEN) TIMES THE CALCULATION BASE, FOR OPERATIONS WITH:

A - FEDERAL PUBLIC SECURITIES;
B - STATE AND MUNICIPAL PUBLIC SECURITIES; C - PRIVATE SECURITIES, LIMITED TO 2 (TWO) TIMES THE CALCULATION BASE;

II - INSTITUTIONS AUTHORIZED UNDER ARTICLE 8 OF THE CITED REGULATIONS - UP TO 5 (FIVE) TIMES THE CALCULATION BASE, FOR OPERATIONS WITH:

A - FEDERAL PUBLIC SECURITIES;
B - STATE AND MUNICIPAL PUBLIC SECURITIES; C - PRIVATE SECURITIES, LIMITED TO 2 (TWO) TIMES THE CALCULATION BASE.

SINGLE PARAGRAPH. RESPECTING THE PROVISIONS OF THE SINGLE PARAGRAPH OF ARTICLE 1, THE LIMITS NOW ESTABLISHED SHALL BE OBSERVED FROM THE DATE OF ENTRY INTO FORCE OF THIS CIRCULAR, ADMITTING THAT ANY EXCESS FOUND MAY BE ELIMINATED GRADUALLY, AS A RESULT OF THE MATURITY OF THE SECURITIES THAT UNDERLIE THE REPO OPERATIONS.

ART. 3. THIS CIRCULAR SHALL ENTER INTO FORCE ON THE DATE OF ITS PUBLICATION.

ART. 4. CIRCULAR NO. 1,485, OF
17.05.89, IS REVOKED.

BRASÍLIA (DF), JULY 10, 1990

GUSTAVO JORGE LABOISSIÈRE LOYOLA LUIS EDUARDO ALVES DE ASSIS DIRECTOR DIRECTOR