CMN Resolution No. 3153 — Credit Contingency for the Public Sector and Limit Changes

RESOLUTION NO. 003153

Contingency of Credit to the Public Sector and Alteration of Limits - Amendments to Resolution No. 2,827, of March 30, 2001.

The CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the MONETARY NATIONAL COUNCIL, in a session held on December 11, 2003, considering the provisions of Article 4, items VI and VIII, of the aforementioned law,

HAS DECIDED:

Art. 1º Include in Resolution No. 2,827, of March 30, 2001, Art. 9º-B, with the following wording:

Art. 9º-B The contracting of new credit operations for the execution of environmental sanitation actions is authorized within the limits specified below:

I - up to R$ 1,100,000,000.00 (one billion and one hundred million reais) destined for financing of projects linked to international bidding processes, with a financing clause provided in the tender notice and whose contracting occurs by April 30, 2004;

II - up to R$ 1,000,000,000.00 (one billion reais) for operations contracted by April 30, 2004, provided for in the State Fiscal Adjustment Programs, as an integral part of refinancing contracts signed with the Union, within the scope of Law No. 9,496, of September 11, 1997, as well as those contained in refinancing contracts for municipal debts, signed under the protection of Provisional Measure No. 2,185-35, of August 24, 2001; and

III - up to R$ 800,000,000.00 (eight hundred million reais) for operations contained in the System for Registration of Operations with the Public Sector - CADIP, respecting the chronological order of their registration.

Paragraph 1º For the purposes of the provision in the caput, environmental sanitation is understood as actions related to:

I - water supply, aimed at improving and expanding the coverage and/or production capacity of water supply systems, including studies and projects intended for developments in this modality;

II - sanitary sewage, aimed at improving and increasing the coverage of sanitary sewage systems and/or the adequate treatment and final disposal of effluents, including studies and projects intended for developments in this modality;

III - solid waste, aimed at implementing facilities for the adequate final disposal of urban solid waste and closing landfills and recovering areas degraded by inadequate deposition of urban solid waste, including studies and projects intended for developments in this modality; and

IV - institutional development, aimed at implementing a program of operational improvements and reduction of costs and losses, aiming to raise the efficiency of agents providing water and sewage services and urban cleaning.

Paragraph 2º The contracting of the operations provided for in the caput of this article shall be implemented in a manner to promote institutional development, increase the efficiency of service operators, and ensure the economic sustainability of the projects.

Paragraph 3º The requirements for the contracting of credit operations provided for in the caput of this article are:

I - obtaining, from the Ministry of Cities, proof of prior classification in accordance with Paragraph 1º;

II - in the case of financing for water supply or sanitary sewage actions, proving to the Ministry of Cities the operation of a service provider agency, constituted as an autarchy, public company, or mixed-economy society, delegatee or concessionaire regularly contracted, executing a policy of recovering service costs, through the effective imposition of legally instituted tariffs or taxes and capable of covering the financial charges and amortization of the financing in question;

III - in the financing of solid waste final disposal actions, proving to the Ministry of Cities a policy of recovering service costs, through the effective imposition of legally instituted tariffs or taxes, and attesting capacity to cover the financial charges and amortization of the financing in question;

IV - establishment of a Performance Improvement Agreement (AMD) with the National Secretariat of Environmental Sanitation of the Ministry of Cities, in conformity with the terms of the appropriate Normative Instruction, fixing object, operational and financial performance indicators, and penalties for partial or total non-compliance with agreed targets, including impediment of access to new financing or suspension of disbursements.

Paragraph 4º Financial institutions that contract credit operations based on this resolution shall send a statement, by the end of the month following the reference period and according to the attached model, to the Ministry of Cities containing the outstanding balance, the amounts disbursed during the period, proving the use of resources in the actions provided for in Paragraph 1º of this article, and the forecast of disbursements for the next 12 months.

Paragraph 5º The Ministry of Cities will send to the Ministry of Finance, 15 days after receiving the statements, a consolidated report of the information referred to in Paragraph 4º.

Paragraph 6º The values of the limits established in items I and II of the caput of this article, if not used by April 30, 2004, will be added to the limit referred to in item III.

Art. 2º Alter item VII of Paragraph 1º of Art. 9º of Resolution No. 2,827, of 2001, included by Resolution No. 2,954, of April 25, 2002, with the following wording:

VII - the operations contracted from this date, provided for in the State Fiscal Adjustment Programs, as an integral part of refinancing contracts signed with the Union, within the scope of Law No. 9,496, of September 11, 1997, as well as those contained in refinancing contracts for municipal debts, signed under the protection of Provisional Measure No. 2,185-35, of August 24, 2001, or those that come to replace them, respecting the global amount of these operations, except those provided for in item II of Art. 9-B. (NR)

Art. 3º Alter Art. 9º-A of Resolution No. 2,827, of March 30, 2001, introduced by Resolution No. 3,049, of November 28, 2002, which shall enter into force with the following wording:

Art. 9º-A The contracting of new credit operations with Municipalities is admitted, except their non-dependent state-owned companies, up to the limit of R$ 200,000,000.00 (two hundred million reais), provided that, upon consultation with the National Treasury Secretariat of the Ministry of Finance, compliance with the provisions of Arts. 31, Paragraph 4º, 32, Paragraph 4º, and 51 of Complementary Law No. 101, of May 4, 2000, is observed. (NR)

Art. 4º The letter "c", of item I, of Paragraph 1º, of Art. 9º, of Resolution No. 2,827, of March 30, 2001, shall enter into force with the following wording:

c) financing of the counterpart in reais of projects financed by Multilateral Credit Organizations, in which the requirement of international bidding with a financing clause provided in the tender notice is stated. (NR)

Art. 5º This Resolution enters into force on the date of its publication.

Brasília, December 11, 2003.

Henrique de Campos Meirelles
President

---

Obs: The attached model referred to in this resolution is available to interested parties on the website of the Central Bank (www.bcb.gov.br).