Circular No. 1.890

CIRCULAR N. 001890 ------------------ PROHIBITS THE CARRYING OUT OF REPURCHASE TRANSACTIONS WITH INDIVIDUALS AND NON-FINANCIAL LEGAL ENTITIES AND HAVING AS THEIR OBJECT SECURITIES ISSUED BY RELATED NON-FINANCIAL ENTITIES OR COMPANIES, AS FROM 01.03.91. WE INFORM THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, AT ITS MEETING OF 1.02.91, BASED ON THE PROVISIONS OF ARTS. 30 OF THE REGULATION ANNEXED TO RESOLUTION NO. 1.088, OF 30.01.86, AND 1 OF RESOLUTION NO. 1.728, OF 10.07.90, DECIDED: ART. 1. TO PROHIBIT INSTITUTIONS AUTHORIZED TO CARRY OUT REPURCHASE TRANSACTIONS FROM ASSUMING COMMITMENTS WITH INDIVIDUALS AND NON-FINANCIAL LEGAL ENTITIES, AS FROM 1.03.91. SOLE PARAGRAPH. THE PROHIBITION REFERRED TO IN THIS ARTICLE DOES NOT INCLUDE COMMITMENTS ASSUMED WITH THE FINANCIAL INVESTMENT FUNDS ESTABLISHED BY RESOLUTION NO. 1.787, OF 1.02.91. ART. 2. TO PROHIBIT THE INSTITUTIONS REFERRED TO IN THE PREVIOUS ARTICLE FROM ASSUMING COMMITMENTS HAVING AS THEIR OBJECT SECURITIES ISSUED BY RELATED NON-FINANCIAL ENTITIES OR COMPANIES, AS FROM 1.03.91. SOLE PARAGRAPH. FOR THE PURPOSES OF THIS ARTICLE, THE CONCEPT OF RELATIONSHIP ESTABLISHED IN PARAGRAPH 2 OF ART. 6 OF RESOLUTION NO. 1.775, OF 06.12.90, SHALL BE USED. ART. 3. TRANSACTIONS CARRIED OUT PRIOR TO 1.03.91, UNDER THE TERMS OF ARTS. 1 AND 2, SHALL BE SETTLED BY THAT DATE. ART. 4. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION. BRASÍLIA (DF), 01 FEBRUARY 1991 GUSTAVO JORGE LABOISSIÈRE LOYOLA LUIS EDUARDO ALVES DE ASSIS DIRECTOR DIRECTOR