Circular No. 968 — Renewal of Guarantees and Sureties Granted to Commercial and Investment Banks

CIRCULAR NO. 000968

To
Commercial Banks and Investment Banks

We inform you that the Board of Directors of the Central Bank of Brazil, in view of the provisions of items V and VI of Resolution No. 1,054, of 30.10.85, has decided that the guarantees already granted, of the types mentioned in that normative instrument, may be renewed under the following conditions:

a) until 31.12.85, without prior authorization, upon communication to the Central Bank of Brazil;

b) from 01.01.86, only with prior authorization from the Central Bank of Brazil, requested by presenting a justification supported by a registration form and a description of the counter-guarantees presented by the beneficiary.

2. The communications mentioned in this Circular and in item V of the aforementioned Resolution, as well as the inquiries and requests for authorization, must be addressed to the Department of Organization and Bank Authorizations (DEORB) by commercial banks, and to the Department of Capital Market Organization (DEORC) by investment banks.

Brasília-DF, October 31, 1985

Carlos Thadeu de Freitas Gomes Luiz Carlos Mendonça de Barros Director Director