Regulatory Alerts2003-03-21
Added
Notice No. 9/2003
Notice No. 9/2003 amends Notice No. 3/95 by adding the Mutual Counter-Guarantee Fund to the list of entities whose assets are exempt from the requirement to set aside provisions. This exemption applies to assets held against these entities, assets guaranteed by them, and off-balance-sheet transactions negotiated on their behalf or with their guarantee. The measure takes effect the day following its publication.
Notices from the Bank of Portugal Notice No. 9/2003
The obligation to set aside provisions provided for in letters a) and b) of paragraph 1 of Notice No. 3/95 does not apply to assets relating to the group of entities indicated in paragraph 1 of Article 15 of the same Notice, nor to assets guaranteed by them or to off-balance-sheet transactions negotiated on their behalf or with their guarantee. The list of these entities includes, in particular, the Deposit Guarantee Fund and the Mutual Agricultural Credit Guarantee Fund.
Taking into account the subject matter and legal regime of the Mutual Counter-Guarantee Fund established by Decree-Law No. 229/98 of 22 July, and considering the analogy with the regimes of the two other Guarantee Funds mentioned above, there are no prudential reasons justifying differential treatment.
Accordingly, the Bank of Portugal, using the competence attributed to it by letter e) of Article 99 of the General Regime of Credit Institutions and Financial Companies, approved by Decree-Law No. 298/92 of 31 December, establishes the following:
- Article 15, paragraph 1, of Notice No. 3/95, published in the Diário da República, 2nd series, of 30 June 1995, is amended by adding letter n), with the following wording:
"n) Mutual Counter-Guarantee Fund."
- This Notice enters into force the day following its publication.
Lisbon, 12 March 2003. - The Governor, Vítor Constâncio.
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