CMN Resolution No. 4,964 — Amends Resolution No. 4,589 to clarify the 45% Reference Equity limit, set a cost cap for Union-guaranteed credit, and create a sub-limit for state-owned enterprises

Resolution No. 4,964

RESOLUTION
CMN NO. 4,964, OF NOVEMBER 25, 2021

Regulatory document revoked, as of 2/5/2022, by CMN Resolution No. 4,995, of March 24, 2022.

Amends Resolution No. 4,589, of June 29, 2017, to clarify aspects associated with the calculation of the 45% (forty-five percent) limit of Reference Equity, establish a limit for the cost of credit operations guaranteed by transfers from the Union, and create a sub-limit for the contracting of credit operations by state-owned enterprises of the states.

The Central Bank of Brazil, in accordance with art. 9 of Law No. 4,595, of December 31, 1964, makes public that the National Monetary Council, in a session held on November 25, 2021, considering the provisions of art. 4, items VI and VIII, of the aforementioned Law,

R E S O
L V E U:

Art. 1
Resolution No. 4,589, of June 29, 2017, shall be in effect with the following alterations:

“Art. 1 ......

......

§ 2 The limit established in the caput does not apply to:

I - credit operations that are the responsibility of, or have formal and full guarantee from, the Union;

II - the values to be released from contracted credit operations; and

III - contracted credit limits that are not utilized.

§ 3 Financial institutions and other institutions authorized to operate by the Central Bank of Brazil subject to the preparation of Consolidated Accounting Statements of the Prudential Conglomerate, in accordance with the Accounting Plan of Institutions of the National Financial System (Cosif), must calculate the limit referred to in the caput on a consolidated basis.

§ 4 The release of values related to contracted credit operations and the utilization of contracted credit limits must be managed in such a way as not to result in non-compliance with the limit established in the caput.” (NR)

“Art. 3-A Credit operations guaranteed by revenues transferred by the Union by constitutional mandate must observe the maximum effective cost limitation for operations guaranteed by the Union, published by the National Treasury Secretariat of the Ministry of Economy, increased by up to 25% (twenty-five percent).” (NR)

“Art. 5 ......

......

§ 3 Within the global limit mentioned in the caput, a specific limit will be established for the contracting of credit operations with state-owned enterprises that meet the following requirements:

I - be non-dependent state-owned enterprises, in accordance with Complementary Law No. 101, of May 4, 2000, for at least 10 (ten) years, including their subsidiaries and/or controlled companies under the exception;

II - be companies listed on B3 S.A. - Brasil, Bolsa, Balcão; and

III - be companies assessed with an investment grade, at the national level, by a risk rating agency registered with the Securities and Exchange Commission (CVM) or recognized by this agency.

§ 4 Financial institutions and other institutions authorized to operate by the Central Bank of Brazil shall be responsible for ensuring compliance with the provisions of § 3.” (NR)

Art. 2 Credit operations contracted prior to the publication of this Resolution by state-owned enterprises that meet the requirements listed in §§ 3 and 4 of art. 5 of Resolution No. 4,589, of 2017, must remain allocated within the limit authorized for the bodies and entities of the States, the Federal District, and the Municipalities.

Art. 3 The Annex to Resolution No. 4,589, of 2017, shall be in effect in the form of the Annex to this Resolution.

Art. 4 This Resolution enters into force:

I - on January 1, 2022, regarding arts. 1 and 3-A of Resolution No. 4,589, of 2017;

II - on the date of its publication, regarding the remaining provisions.

Roberto de Oliveira Campos Neto
President of the Central Bank of Brazil

ANNEX

(Annex to Resolution No. 4,589, of June 29, 2017)

Annual limit for contracting credit operations for bodies and entities of the public sector to be observed by financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

Year	Operations with Union Guarantee	Operations without Union Guarantee	Total
2018	Up to R$13,000,000,000.00	Up to R$11,000,000,000.00	Up to R$24,000,000,000.00
2019	Up to R$13,500,000,000.00	Up to R$11,000,000,000.00	Up to R$24,500,000,000.00
2020	Up to R$9,000,000,000.00	For bodies and entities of the States, the Federal District, and Municipalities Up to R$11,000,000,000.00	Up to R$20,400,000,000.00
For bodies and entities of the Union Up to R$400,000,000.00
2021	Up to R$6,500,000,000.00	For bodies and entities of the States, the Federal District, and Municipalities**, excluding the state-owned enterprises referred to in § 3 of art. 5 Up to R$10,500,000,000.00**	Up to R$20,500,000,000.00
For the state-owned enterprises referred to in § 3 of art. 5 Up to R$3,000,000,000.00
For bodies and entities of the Union Up to R$500,000,000.00