Resolution CMN No. 1696 — Revokes provisions on the establishment of deposits registered in foreign currencies with the Central Bank and establishes provisions for their release

RESOLUTION NO. 001696

REVOKES PROVISIONS ON THE ESTABLISHMENT
OF DEPOSITS REGISTERED IN FOREIGN CURRENCIES WITH THE CENTRAL BANK, AND ESTABLISHES PROVISIONS FOR THEIR RELEASE.

THE CENTRAL BANK OF BRAZIL, IN ACCORDANCE WITH ARTICLE 9 OF LAW NO. 4,595, OF 12.31.64, MAKES PUBLIC THAT THE PRESIDENT OF THE MONETARY COUNCIL, BY ACT OF 03.29.90, BASED ON ARTICLE 2 OF DECREE NO. 94,303, OF 05.01.87, "AD REFERENDUM" OF THAT COUNCIL, AND TAKING INTO ACCOUNT THE PROVISIONS OF ARTICLES 3, ITEMS I AND VII, AND 4, ITEMS V AND XXXI OF THE MENTIONED LAW NO. 4,595,

RESOLVES:

ART. 1. THE PROVISIONS THAT AUTHORIZE OR DETERMINE THE ESTABLISHMENT OF DEPOSITS -- REGISTERED IN FOREIGN CURRENCIES -- GOVERNED BY THE FOLLOWING ACTS OR DERIVED FROM THESE ARE REVOKED:

• RESOLUTION NO. 229, OF 09.01.72;
• RESOLUTION NO. 432, OF 06.23.77;
• RESOLUTION NO. 479, OF 06.20.78;
• RESOLUTION NO. 595, OF 01.16.80;
• RESOLUTION NO. 1,369, OF 07.30.87;
• RESOLUTION NO. 1,646, OF 10.06.89;
• RESOLUTION NO. 1,662, OF 11.16.89;
• CIRCULAR NO. 230, OF 08.29.74;
• CIRCULAR NO. 600, OF 01.22.81;
• CIRCULAR NO. 1,302, OF 03.18.88; AND
• CIRCULAR NO. 1,303, OF 03.18.88.

ART. 2. THE AMOUNTS MAINTAINED IN DEPOSIT UNDER THE SCHEMES MENTIONED IN THE PREVIOUS ARTICLE -- AS WELL AS THE REMAINING AMOUNTS FROM DEPOSITS ESTABLISHED UNDER THE ALREADY REVOKED RESOLUTION NO. 1,209, OF 10.31.86, AND CIRCULAR NO. 1,186, OF 06.11.87 -- WILL BE AVAILABLE FROM THE DATES OF THEIR RESPECTIVE MATURITIES, PROVIDED THAT, IN ACCORDANCE WITH THE REGULATIONS IN FORCE, THEY ARE ENTIRELY DESTINED TO:

I - THE CONCLUSION OF EXCHANGE CONTRACTS FOR SIMULTANEOUS RE-DEPOSIT AT THE CENTRAL BANK, UNDER THE PROVISIONS:

A - OF RESOLUTION NO. 1,564, OF 01.16.89, OR

B - THAT REGULATE THE PAYMENT OF RENEGOTIATED OBLIGATIONS WITHIN THE SCOPE OF THE PARIS CLUB OR THE BRAZILIAN FINANCING PLAN;

II - THE CONCLUSION OF AN EXCHANGE CONTRACT FOR IMMEDIATE TRANSFER OF THE CORRESPONDING AMOUNT IN FOREIGN CURRENCY TO THE ABROAD, IN COMPLIANCE WITH THE OBLIGATION THAT GAVE RISE TO THE DEPOSIT;

III - THE SETTLEMENT OF DEBTS WITH THE NATIONAL TREASURY, ARISING FROM THE EXECUTION OF GUARANTEES GRANTED BY IT FOR OBLIGATIONS ASSUMED ABROAD BY ENTITIES OF THE PUBLIC SECTOR.

SINGLE PARAGRAPH. THE PROVISIONS OF THIS ARTICLE ALSO APPLY TO THE CHARGES REFERRED TO IN FOREIGN CURRENCY OF RESPONSIBILITY OF THIS CENTRAL BANK, INCURRED ON THE CORRESPONDING DEPOSITS REGISTERED IN FOREIGN CURRENCIES.

ART. 3. THE AMOUNTS DEPOSITED UNDER RESOLUTION NO. 1,662, OF 11.16.89, WILL BE RELEASED ACCORDING TO THE CRITERIA INDICATED BELOW:

I - 20% (TWENTY PERCENT) IN CRUZEIROS, AT THE MATURITY OF THE DEPOSIT;

II - THE EXCESS AMOUNT WILL BE MAINTAINED IN DEPOSIT AND RELEASED IN 12 (TWELVE) EQUAL AND SUCCESSIVE MONTHLY INSTALLMENTS, STARTING FROM 09.16.91;

III - FOR THE RELEASE OF THE DEPOSITS COVERED BY THIS ARTICLE, THE SALES RATE FOR THE UNITED STATES DOLLAR, FIXED FOR THE BUSINESS DAY IMMEDIATELY PRECEDING THE RESPECTIVE RELEASE, AVAILABLE IN SISBACEN -- TRANSACTION PTAX800, OPTION 5 -- QUOTATIONS FOR ACCOUNTING, WILL BE USED;

IV - THE CENTRAL BANK MAY ADJUST THE INTEREST RATES ORIGINALLY INCURRED ON THE DEPOSITS TO THE NEW TERM CONDITIONS.

PARAGRAPH 1. FOR THE PURPOSES OF THIS ARTICLE, THE CANCELLATION, WRITE-OFF, OR TRANSFER TO "SPECIAL POSITION" -- PARTIAL OR TOTAL -- OF THE EXPORT EXCHANGE CONTRACT TO WHICH THE DEPOSIT IS LINKED WILL NOT DETERMINE ITS MATURITY.

PARAGRAPH 2. THE DEPOSITS ESTABLISHED UNDER RESOLUTION NO. 1,662, OF 11.16.89, WITH MATURITIES ORIGINALLY SCHEDULED FOR THE PERIOD OF 03.14.90 TO 04.01.90, WILL BE AUTOMATICALLY EXTENDED TO 04.02.90.

ART. 4. THE AMOUNTS REFERRED TO IN ITEM II OF ARTICLE 3 MAY BE RELEASED IN ADVANCE OF THE TERMS ESTABLISHED THEREIN, IN THE EVENT OF LIQUIDATION -- CARRIED OUT AFTER 03.13.90 -- TOTAL OR PARTIAL OF THE EXPORT EXCHANGE CONTRACT TO WHICH THE DEPOSIT IS LINKED.

PARAGRAPH 1. THE RELEASES COVERED BY THIS ARTICLE WILL BE CARRIED OUT -- PROPORTIONALLY TO THE LIQUIDATED AMOUNTS, AND ACCRUED WITH THE CORRESPONDING INTEREST -- ON THE BUSINESS DAY FOLLOWING THE DATE OF LIQUIDATION OF THE RESPECTIVE EXCHANGE CONTRACT, OR ON THE DATE OF MATURITY OF THE DEPOSIT WHEN, IN THIS CASE, THE SAID CONTRACT IS LIQUIDATED PRIOR TO THE MATURITY OF THE DEPOSIT.

PARAGRAPH 2. THE PRINCIPAL AMOUNTS PREVIOUSLY RELEASED IN ACCORDANCE WITH ITEMS I AND II OF ARTICLE 3 ARE COUNTED IN THE RELEASES MENTIONED IN THIS ARTICLE.

ART. 5. THE AMOUNTS RELATING TO DEPOSITS ESTABLISHED OR MAINTAINED UNDER THE SCHEMES MENTIONED IN ARTICLES 1 AND 2, WHERE ERROR, DEFECT, OR EXCESS IS CONFIGURED, WILL BE RELEASED ACCORDING TO RULES TO BE ESTABLISHED BY THE CENTRAL BANK, WHICH MAY, IN ADDITION, ESTABLISH THE TERMS AND EXCHANGE RATES APPLICABLE IN EACH CASE.

ART. 6. THE RELEASES OF DEPOSITS REGISTERED IN FOREIGN CURRENCIES, NOT GOVERNED BY THIS RESOLUTION, WILL BE EFFECTED ACCORDING TO A SCHEDULE TO BE APPROVED BY THE MONETARY COUNCIL.

ART. 7. THE CENTRAL BANK MAY ADOPT ALL MEASURES NECESSARY FOR THE COMPLIANCE WITH THE PROVISIONS OF THIS RESOLUTION, INCLUDING DETERMINING:

I - MATURITIES OF DEPOSITS, WHEN NOT ESTABLISHED ON A CERTAIN DATE;

II - EXCHANGE RATES FOR CONVERSION, TO THE NATIONAL CURRENCY, OF THE FOREIGN CURRENCY ESTABLISHED IN DEPOSIT.

ART. 8. RESOLUTION NO. 1,691, OF 03.18.90, AND OTHER PROVISIONS TO THE CONTRARY, ARE REVOKED.

ART. 9. THIS RESOLUTION ENTERS INTO FORCE ON 04.02.90.

BRASILIA-DF, MARCH 29, 1990

IBRAHIM ERIS
PRESIDENT