Resolution CMN No. 1147 — Economic Stabilization Plan — Reduction of Credit to Consumers and Prohibition of Loans to Private Pension Plan Participants

RESOLUTION NO. 001147

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 VI, of the aforementioned Law,

RESOLVES:

I - To establish that the operations of credit, financing, and investment companies destined for the financing of the acquisition of goods and services must show, by September 30, 1986, a reduction of 20% (twenty percent), relative to the balances verified on the base date of May 30, 1986, observing the following schedule:

a) 7% (seven percent) by July 31, 1986;

b) 7% (seven percent) by August 29, 1986; and

c) 6% (six percent) by September 30, 1986.

II - Credit, financing, and investment companies not affiliated with commercial banks will observe a corresponding reduction of 50% (fifty percent) of the percentages established in the previous item.

III - Once the reduction required in items I and II of this regulation is achieved, the balances of those operations may not show growth until December 31, 1986.

IV - Non-compliance with the provisions in items I and II will imply the payment, to the Central Bank, of the value equivalent to the excess determined.

V - Investment banks are prohibited from carrying out credit operations of any nature with individuals.

VI - The Central Bank will issue complementary regulations to the provisions of this Resolution, including the power to suspend the limitations provided herein.

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

Brasilia-DF, June 26, 1986

Fernão Carlos Botelho Bracher
President