Resolution CMN No. 2347 — Regulates the establishment and operation of development or promotion agencies

RESOLUTION NO. 2347

Regulates the establishment and operation of development or promotion agencies.

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 December 19, 1996, based on Article 4, item VIII, of the same Law, and on Article 1, paragraph 2, of Provisional Measure No. 1,556 of December 18, 1996,

RESOLVES:

Art. 1 Approve the establishment and operation of development or promotion agencies under the shareholding control of a Federation Unit, whose corporate object is the granting of financing for fixed capital and working capital associated with projects in the Country, in accordance with the supplementary norms to be issued by the Central Bank of Brazil.

Paragraph 1 Development or promotion agencies are not financial institutions - their transformation into any type of institution integrated into the National Financial System is prohibited, although they are subject to the supervision and inspection of the Central Bank of Brazil.

Paragraph 2 The establishment and operation of a development or promotion agency, in the form of a closed-capital corporation in accordance with Law No. 6,404 of December 15, 1976, depend on authorization from the Central Bank of Brazil.

Paragraph 3 The expression "Promotion Agency" or "Development Agency" must appear in the corporate name of the companies referred to in this article.

Paragraph 4 Each Federation Unit may establish only one (1) development or promotion agency.

Art. 2 Development or promotion agencies may only carry out operations involving the transfer of resources captured in the Country and abroad originating from:

I - constitutional funds;

II - budgets of states and municipalities;

III - national and international development organizations and institutions.

Art. 3 Development or promotion agencies must permanently observe minimum limits of paid-in capital and adjusted net worth of R$4,000,000.00 (four million reais).

Art. 4 The following are prohibited for development or promotion agencies:

I - access to financial assistance lines of the Central Bank of Brazil;

II - access to a bank reserve account at the Central Bank of Brazil;

III - the capture of resources from the public;

IV - the contracting of interfinancial deposits, as depositor or depository;

V - the application of resources with yield lower than capture costs.

Art. 5 The liabilities of development or promotion agencies will not be covered by the Credit Guarantee Fund (FGC), with the agency responding with its own resources and the controller subsidiarily for operational risk.

Art. 6 Development or promotion agencies must establish, with their own resources, a liquidity fund equivalent to at least the result of the weighting of their assets by the corresponding risk, in accordance with Resolution No. 2,099 of August 17, 1994, to be fully applied in federal public securities.

Art. 7 Development or promotion agencies must comply with the procedures for bookkeeping, preparation, and submission of financial statements provided for in the Accounting Plan of the Institutions of the National Financial System - COSIF.

Art. 8 The Central Bank of Brazil may issue norms and adopt measures deemed necessary for the execution of the provisions of this Resolution.

Art. 9 This Resolution enters into force on the date of its publication.

Brasilia, December 20, 1996

Gustavo Jorge Laboissière Loyola
President