CMN Resolution No. 3431 — Reprogramming of Payments for Debts of Financings under the Bahia Cocoa Crop Recovery Program

RESOLUTION NO. 3431

Provides for the reprogramming of the payment of debts of financings under the Bahia Cocoa Crop Recovery Program.

The CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law 4,595, of December 31, 1964, makes public that the MONETARY COUNCIL, in a session held on December 21, 2006, considering the provisions of Article 4, item VI, of the aforementioned law, Articles 4 and 14 of Law 4,829, of November 5, 1965, and Article 5 of Law 10,186, of February 12, 2001,

RESOLVES:

Art. 1 The installments due on July 15, 2006, and those due on January 15, 2007, relating to operations under the Bahia Cocoa Crop Recovery Program, which are part of Stage 3, as provided for in Article 1, item II, of Resolution 3,345, of February 3, 2006, maintaining the other conditions originally agreed upon, shall have their payments reprogrammed, respectively, to up to January 15, 2014, and July 15, 2014.

Sole Paragraph. The total value of the non-capitalized interest, relating to the installments due in July 2006 and those due in January 2007, shall be incorporated proportionally into the installments due starting from February 2007.

Art. 2 The operations referred to in Article 4 of Resolution 2,960, of April 25, 2002, contracted between April 29, 2002, and September 30, 2003, and which constitute Stage 4 of the program, shall have the payments of the installments due and those due in January 2007 reprogrammed to occur starting from the year following the last installment of the originally agreed repayment schedule, respecting the periodicity and the other conditions of the original contract.

Art. 3 The installments due in July 2006 and those due in January 2007, of the financings intended for the acquisition of National Treasury securities, as provided for in Article 2 of Resolution 2,960, of 2002, preserving the other conditions originally agreed upon, shall have their payment reprogrammed to, respectively, up to July 2008 and up to January 2009.

Art. 4 The deadline, including that established in Article 1, § 1, of the aforementioned Resolution 3,345, of 2006, for financial agents to adopt the necessary measures to enable the renegotiation of the operations, as well as to formalize the addendums with the borrowers, on a case-by-case basis, is extended to June 29, 2007.

Sole Paragraph. The operations shall be maintained in a normal status until June 29, 2007, and the financial agent must pay attention to the necessary adoption of appropriate procedures within its scope to avoid the statute of limitations on the debt.

Art. 5 The reprogramming provided for in this resolution must be carried out without prejudice to the observance of the provisions of Resolution 2,682, of December 21, 1999, regarding the classification of the aforementioned operations.

Art. 6 This resolution enters into force on the date of its publication.

Art. 7 Resolutions 3,386, of July 4, 2006, and 3,413, of October 4, 2006, are hereby revoked.

Brasília, December 29, 2006.

Alexandre Antonio Tombini
President, substitute