CMN Resolution No. 4314 — Authorizes Renegotiation of Credit Operations Contracted Using Funds from the Constitutional Financing Funds for the Center-West (FCO), Northeast (FNE), and North (FNO)

The Central Bank of Brazil, pursuant to Article 9 of Law No. 4,595 of December 31, 1964, makes public that the National Monetary Council, in a session held on March 27, 2014, considering the provisions of Article 4, item VI, of Law No. 4,595 of 1964, and Article 15, paragraph 1, of Law No. 7,827 of September 27, 1989, as amended by Law No. 12,793 of April 2, 2013,

R E S O L V E S:

Article 1. Financial institutions administering the Constitutional Financing Funds for the North (FNO), Northeast (FNE), and Center-West (FCO) are authorized to renegotiate, at their discretion, credit operations contracted by December 31, 2008, using resources from these Funds, with fund risk or shared risk between the bank and the respective fund, which were in a state of default as of December 30, 2012, in the following manner, maintaining the other conditions provided in the current contract:

I - update of the outstanding balance: up to the date of formalization of the renegotiation, by the charges established for normal situations, without the incidence of compliance bonus, rebate, fine, late payment charges, and other default charges;

II - minimum amortization: equivalent to 10% (ten percent) of the outstanding balance updated in accordance with item I;

III - repayment: within up to 10 (ten) years, with a grace period of up to 1 (one) year, maintaining the periodicity provided in the contract subject to the renegotiation;

IV - risk: the credit risk of the original operation will be maintained;

V - deadline for renegotiation: until December 31, 2014.

Paragraph 1. At the discretion of the financial institution, it is admitted that the debt with shared risk may be separated, allowing the fund portion of the Constitutional Fund to be renegotiated based on this Resolution.

Paragraph 2. Credit operations of borrowers who have misappropriated resources or who have been characterized as unfaithful depositors are not eligible for renegotiation under the conditions established by this Resolution, except in cases where the borrower has regularized their situation.

Paragraph 3. The return or compensation of paid values will not be admitted under any circumstances.

Paragraph 4. In operations with partial or full risk of the FCO, FNE, or FNO, the burden resulting from the adjustment of the outstanding balance provided for in item I of the main text will be borne by the respective source, respecting the proportion of the risk of each in the total of the renegotiated operations.

Paragraph 5. The settlement of the operations covered by this Resolution is admitted based on the outstanding balance updated in accordance with item I of the main text, observing the deadline provided in item V of the main text.

Article 2. This Resolution enters into force on the date of its publication.

Alexandre Antonio Tombini
President of the Central Bank of Brazil