Circular No. 3.444

CIRCULAR No. 003444 ------------------ Amends Circular No. 3.418 of 4 November 2008. The Collegiate Board of the Central Bank of Brazil, in a session held on 25 March 2009, based on arts. 10, item V, and 11, item III, of Law No. 4.595 of 1964, and on art. 7 of Resolution No. 3.622 of 9 October 2008, D E C I D E D: Art. 1 The arts. 1 and 3 of Circular No. 3.418 of 4 November 2008 shall henceforth have the following wording: "Art. 1 This circular provides for the performance, by the Central Bank of Brazil, of foreign currency loan operations with collateral constituted by assets denominated or referenced in United States dollars, under the terms of art. 2, item II, of Resolution No. 3.622 of 9 October 2008, with the wording given by Resolution No. 3.691 of 23 March 2009. Sole paragraph. The operations referred to in the caput shall be carried out by auction, in which banking financial institutions authorized to operate in the foreign exchange market may participate, and the borrower may transfer the loan funds to its branches, subsidiaries and affiliates abroad." (NR) ....................................................... "Art. 3 Financial institutions shall update each month or, at any time, upon determination of the Central Bank of Brazil, the list of assets in collateral under the terms of this circular. Sole paragraph. ...................................... ................................................." (NR) Art. 2 The art. 2 of Circular No. 3.418 of 4 November 2008 shall henceforth have the following amendments: "Art. 2 .............................................. ....................................................... § 1 The Central Bank of Brazil may condition the formalization of the loan referred to in this circular on the granting of Advances on Foreign Exchange Contracts (ACC) and Advances on Delivered Foreign Exchange (ACE) with the funds obtained in the committed operation referred to in the caput. § 2 In the event of the preceding paragraph, the loan amount shall be equivalent to the amount of the ACC and ACE granted by the financial institution and offered as collateral to the Central Bank of Brazil. § 3 Without prejudice to the procedure established in §§ 1 and 2, the following assets may, at the discretion of the Central Bank of Brazil, be accepted as collateral for foreign currency loans, in the proportion of 100% (one hundred percent): a) ACC and ACE, provided they are granted with the funds obtained in the committed operation referred to in the caput; b) advance receipt of exports registered in the Financial Operations Registration module of the Electronic Declaratory Registration system (RDE/ROF); c) external loan registered in the RDE/ROF; d) import financing registered in the RDE/ROF; e) onlending contracted under Resolution No. 2.770 of 30 August 2000; f) leasing and rental of equipment; g) other assets denominated or referenced in United States dollars, indicated in an act of the Central Bank of Brazil. § 4 The
repurchase rate of foreign currency by the Central Bank of Brazil shall be defined, under the terms of the communiqué referred to in art. 4, based on the cut-off interest rate of the auction referred to in the sole paragraph of art. 1." (NR) Art. 3 This circular enters into force on the date of its publication. Brasília, 25 March 2009. Mario Torós Director