Resolution CMN No. 2237 — Limits Anticipation of Budgetary Revenue (ARO) Operations to Specified Balances

RESOLUTION NO. 2237

Limits Anticipation of Budgetary Revenue (ARO) Operations to the Balances Specified.

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 January 31, 1996, considering the provisions of Article 4, items VI and VIII, of the aforementioned Law,

RESOLVES:

Article 1. Establish that the balances of Anticipation of Budgetary Revenue (ARO) credit operations are limited to the balances of these operations calculated by financial institutions on the base date of November 30, 1995, plus the value of operations contracted from December 1, 1995, provided they were filed with the Central Bank of Brazil by December 5, 1995, adjusted monthly by the Reference Rate (TR).

Article 2. Determine that, without prejudice to other penalties and sanctions provided for in current regulations, a financial institution that presents an excess resulting from the registration of a new operation, in the positions calculated on the last business day of each month, in relation to the limit established in Article 1 of this Resolution, shall be subject to depositing with the Central Bank of Brazil the value of the excess calculated.

Paragraph 1. The deposit provided for in this article must be made on the fifth business day of the second month following the occurrence of the irregularity.

Paragraph 2. The release of partial or total deposit shall occur on the fifth business day of the second month following the statement in which a reduction or elimination of the excess is verified.

Article 3. Prohibit the realization of new ARO operations with states benefiting from the refinancing referred to in Resolution No. 2,236 of January 31, 1996, while the aforementioned refinancing operations are not settled.

Paragraph 1. The prohibition provided for in the "caput" of this article does not apply in the case where the resources of the new ARO operation are destined for the liquidation of operations of the kind mentioned in Article 1 of this Resolution.

Paragraph 2. The new ARO operations referred to in the previous paragraph must contain a clause providing for the monthly payment of principal and interest, in the first 11 (eleven) months, in a value not less than 1/30 (one thirtieth) of the outstanding balance.

Article 4. Establish that the limit referred to in Article 1 of this Resolution may be exceeded by up to 25%, without any penalty, in the case where the resources of the new ARO operation are destined for the liquidation of operations of the kind mentioned in Article 1, provided that the provisions of Paragraph 2 of Article 3, all of this Resolution, are met.

Article 5. Determine that the limit established in Article 1 of this Resolution must be deducted, in the month of liquidation:

I - from the value of ARO operations liquidated with resources originating from any other modalities of operations other than ARO, including those contracted in the manner provided for in Article 1 of Resolution No. 2,236 of January 31, 1996.

II - from the value of the amortization of ARO operations contracted in accordance with Paragraphs 1 and 2 of Article 3 and Article 4.

Article 6. Authorize the Central Bank of Brazil to adopt the necessary measures for the compliance with the provisions of this Resolution.

Article 7. Revoke Resolution No. 2,218 of December 5, 1995, and Resolution No. 2,221 of December 6, 1995.

Article 8. Establish that this Resolution enters into force on the date of its publication.

Brasília, January 31, 1996

Gustavo Jorge Laboissière Loyola
President