Resolution CMN No. 2366 — Authorizes Caixa Econômica Federal to Acquire Credits from the National Financial System and Adjusts Public Sector Credit Contingency Limits

RESOLUTION NO. 002366

Authorizes Caixa Econômica Federal to acquire credits from the National Financial System, under the Support Program for State Restructuring and Fiscal Adjustment, and makes adjustments to the limits of credit contingency for the public sector governed by Resolutions No. 2,008 of July 28, 1993, and No. 2,237 of January 31, 1996.

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 March 17, 1997, considering the provisions of Article 4, items VI and VIII, of the aforementioned Law,

RESOLVES:

Article 1. Authorize Caixa Econômica Federal to acquire credits held by the National Financial System from states that have renegotiated their debts with the Federal Government under the Support Program for State Restructuring and Fiscal Adjustment.

Paragraph 1. Fix June 30, 1997, as the deadline for Caixa Econômica Federal to effectuate such acquisitions.

Paragraph 2. Grant Caixa Econômica Federal exceptional treatment within the limits of Resolution No. 2,008 of July 28, 1993, regarding the credit acquisitions addressed in this article.

Paragraph 3. Determine that only credit operations registered in the System for Registration of Credit Operations with the Public Sector - CADIP, established by Resolution No. 2,008 of July 28, 1993, until January 23, 1997, will be acquired by Caixa Econômica Federal.

Article 2. Establish the following conditions to facilitate acquisitions by Caixa Econômica Federal:

I - regarding the installments of the funded debt due, the update of debtor balances shall be made using indicators and contractual rates until February 28, 1997, and thereafter using the SELIC rate, until the date of acquisition;

II - regarding the installments of the funded debt overdue, the update of debtor balances shall be made using indicators and contractual rates until the date of the original maturity of the installments, and thereafter using the SELIC rate, until the date of acquisition;

III - in the case of funded debt, only contractual addendums authorized by the Monetary Council shall be considered;

IV - in the case of budget revenue anticipation operations, all addendums or new contracts entered into until January 23, 1997, and thereafter, provided they are linked to operations "in force" until that date, shall be considered;

V - regarding budget revenue anticipation operations, the calculation of the respective debtor balances shall be made according to the following methodology:

a) the debt is calculated on February 28, 1997, using indicators and contractual rates;

b) the value is updated with a base date of September 25, 1996, by de-capitalizing using indicators and contractual rates the value calculated on February 28, 1997;

c) a commission is added at the credit opening rate of 0.47% (forty-seven hundredths percent) on the value calculated on September 25, 1996;

d) the resulting value is capitalized, using the rates practiced by Caixa Econômica Federal for operations of line III of CMN Vote No. 162 of November 29, 1995, between September 25, 1996, and the date of effective payment.

Article 3. Fix the following rules for the operationalization of the acquisitions provided for in Article 1 of this Resolution:

I - by March 20, 1997, banks holding credits must send to Caixa Econômica Federal the documentation proving the credits, including contracts, addendums, and any authorizations, spreadsheets with debtor balances, indicators and contractual rates, and calculation methodologies;

II - by April 14, 1997, the contracts entered into must be sent to the Federal Senate;

III - settlement of the operation by Caixa Econômica Federal, through the Bank Reserves account of the institutions involved, within 48 (forty-eight) hours after the publication of the deliberative act of the Federal Senate;

IV - the period between the receipt by Caixa Econômica Federal of the documentation proving the credits held by the institutions and its financial settlement shall be disregarded for the purpose of the exigibility contained in paragraph 2 of Article 4 of Resolution No. 2,008 of July 28, 1993;

V - credits related to requests sent to Caixa Econômica Federal after March 20, 1997, will only be paid 30 (thirty) days after the publication of the deliberative act of the Federal Senate.

Article 4. Establish that financial institutions selling credits to Caixa Econômica Federal (CEF), covered by Article 1 of this Resolution, will have their limits, governed by Resolutions No. 2,008 of July 28, 1993, and No. 2,237 of January 31, 1996, reduced by the value paid by Caixa Econômica Federal for said credits.

Article 5. Determine that, in the event that the credits are not acquired by Caixa Econômica Federal, as established in Article 1 of this Resolution, the creditor financial institutions will have their limits, governed by Resolutions No. 2,008 of July 28, 1993, and No. 2,237 of January 31, 1996, reduced by the exigible values of those credits, according to contractual conditions, until the complete maturity of the operation, regardless of their payment by the debtor states.

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

Article 7. This Resolution enters into force on the date of its publication.

Brasília, March 17, 1997

Paolo Enrico Maria Zaghen
President, in exercise