CMN Resolution No. 595 - External Loans - Alteration in the System for Retention of the Countervalue in Cruzeiros

RESOLUTION NO. 000595

The CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the MONETARY COUNCIL, in a session held on this date, having regard to the provisions of Article 4, item V, of the aforementioned Law, with the wording given by Article 4 of Decree-Law No. 581 of May 14, 1969,

RESOLVES:

I - External loans not subject to registration with the Central Bank, in the form of Article 7, paragraph 1, of Decree No. 84,128 of October 29, 1979, that enter from January 17, 1980, inclusive, will have 75% of their countervalue in Cruzeiros temporarily destined for the simultaneous constitution of a deposit, in foreign currency, in the form of Resolution No. 432 of June 23, 1977, modified by Resolution No. 588 of December 7, 1979.

II - The deposits that are constituted in the manner of the preceding item will be available according to the following schedule:

a) 1/3 (one third) 60 (sixty) days after the constitution of the deposit;

b) 1/3 (one third) 30 (thirty) days after the date indicated in item "a";

c) 1/3 (one third) 60 (sixty) days after the date indicated in item "a".

III - Maintain the release scheme established by Resolution No. 497 of November 22, 1978, for deposits constituted until January 16, 1980.

IV - Increase to 4 (four) times the value of the respective paid-in capital plus reserves the coefficient for capture, by commercial banks, of external loans under the protection of Resolution No. 63 of August 21, 1967.

V - In special cases, regarding the transfer of resources originating from operations under the protection of Resolution No. 63, the Central Bank may reduce the limit provided in item I of Resolution No. 521 of March 14, 1979.

VI - The Central Bank may issue complementary instructions that are necessary for the execution of the provisions of this Resolution.

VII - This Resolution will enter into force on the date of its publication.

Brasilia-DF, January 16, 1980

Ernane Galveas
President