Resolution CMN No. 2461 — Redefines Rules for Public Sector Credit Contingency and Establishes Limits for Operations

RESOLUTION NO. 2461

Redefines rules for the contingency of credit to the public sector and establishes limits for the realization of operations

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 9, 1997, having in view the provisions of Article 4, items VI and VIII, of the aforementioned Law,

RESOLVES:

Art. 1 The total amount of applications of the National Financial System with organs and entities of the public sector is limited to the sum of the balances ascertained in financial institutions on September 30, 1997, disregarding operations by anticipation of budgetary revenues.

Sole Paragraph. Understood as organs and entities of the public sector:

I - the direct administration of the powers of the Union, the States, the Federal District, and the Municipalities;

II - public companies, mixed-capital societies, their subsidiaries, and other companies controlled, directly or indirectly, by the Union, the States, the Federal District, and the Municipalities;

III - autarchies and foundations established or maintained, directly or indirectly, by the Union, the States, the Federal District, and the Municipalities;

IV - other organs or entities of the powers of the Union, the States, the Federal District, and the Municipalities.

Art. 2 The limit referred to in Article 1 of this Resolution will be calculated by the Central Bank of Brazil, observing the following operationalization and data source:

I - Demonstratives of Resolution No. 2,008 of July 28, 1993 - Perform the sum of the positions existing on September 30, 1997, identifying the total value of the applications of the financial system with organs and entities of the public sector, disaggregating the operations by subgroup of organs and entities of the public sector, as established in the sole paragraph of Article 1 of this Resolution;

II - System of Registration of Credit Operations with the Public Sector - CADIP - Perform the sum of the monthly information (position of September 30, 1997) of the credit operations registered in the system, identifying the total value of the credit operations maintained with the organs and entities of the public sector, disaggregating the operations by subgroup of organs and entities of the public sector, as established in the sole paragraph of Article 1 of this Resolution;

Sole Paragraph. The limit referred to in this Resolution will be the lowest value among those ascertained after applying the rules established in items I and II of this article, plus the value of payments related to refinancings carried out under the auspices of Laws No. 7,976/89 and 8,727/93.

Art. 3 The limits ascertained in the manner of Article 2 of this Resolution will be corrected monthly, applying a factor of 80% (eighty percent) of the Reference Rate - TR, or another index that comes to replace it.

Sole Paragraph. The application margins will correspond to the positive difference between the limit ascertained according to the caput of this article and the balance of the respective applications existing in the CADIP on the date.

Art. 4 The following modalities of operations are excluded from the limitation determined in Article 1 of this Resolution:

I - those approved by the Central Bank of Brazil until November 12, 1997;

II - those approved by the credit committees of the Federal Savings and Loan Association until November 12, 1997, and that use resources originating from the Time Service Guarantee Fund;

III - those that use resources from Protech and the Time Service Guarantee Fund, the latter for Sanitation and Housing, provided that the disbursements provided do not exceed R$800 million per year;

IV - those approved by the credit committee of the National Bank for Economic and Social Development until November 14, 1997;

V - new operations carried out by the National Bank for Economic and Social Development, provided that the disbursements provided do not exceed R$600 million per year;

VI - new operations carried out by Banco do Brasil S.A. and destined to finance programs for the reduction of personnel expenses and the strengthening of budgetary and financial management, up to the value of R$100 million;

VII - new operations carried out by Banco do Nordeste do Brasil S.A. and destined to the financing of counterparty of loans from the Inter-American Development Bank within the Program for the Development of Tourism in the Northeast, up to the value of R$120 million;

VIII - new operations carried out by federal credit and development financial institutions or their subsidiaries, provided that they constitute the transfer of resources from external loans contracted with international organizations;

IX - new operations carried out by federal credit and development financial institutions or their subsidiaries and that are inserted in the Popular Productive Credit program, in which the final borrower is a natural person, cooperative, or association, and in which the State, the Federal District, or the Municipality participates only as an intermediary;

X - those carried out by the National Bank for Economic and Social Development, with the direct or indirect administration of States, Federal District, or Municipalities, with the express objective of anticipating revenues from the process of privatization of their companies, provided that authorized in a joint act of the Ministers of Finance and of Planning and Budget; and

XI - sureties, guarantees, and securities.

Art. 5 The applications of the institutions of the National Financial System in shares, bonds, and securities of federal, state, and municipal state-owned companies are limited to the sum of these positions ascertained on September 30, 1997.

Sole Paragraph. The limit treated in this article will be reduced in the measure of the maturities and redemptions of the referred papers.

Art. 6 The following operations of the institutions of the National Financial System contracted with the public sector may be renewed:

I - those formally and exclusively guaranteed by sales or service provision bills of exchange, issued by the credit beneficiary itself;

II - the acquisition of credit rights with or without co-obligation; and

III - operations supporting exports.

Sole Paragraph. The renewals referred to in the caput of this article are limited to the amounts individualized of the three types of operation listed in items I to III of this article, ascertained on September 30, 1997, corrected monthly, applying a factor of 80% (eighty percent) of the Reference Rate - TR, or another index that comes to replace it.

Art. 7 The System of Registration of Operations with the Public Sector - CADIP - instituted by Resolution 2,008/93 is maintained.

Sole Paragraph. The Central Bank of Brazil will adopt the necessary measures so that the System referred to in the caput of this article comes to maintain updated records regarding the indebtedness of organs and entities of the public sector with external financial organisms and agencies, with the Time Service Guarantee Fund, and with the National Institute of Social Security.

Art. 8 It is forbidden to financial institutions and leasing companies:

I - to carry out new operations with organs and entities of the public sector, if they present pending registrations in the CADIP; and

II - to carry out credit or leasing operations with organs and entities mentioned in Article 1 of this Resolution that are delinquent with the National Financial System.

Art. 9 The Central Bank of Brazil is obliged to disclose, until the tenth business day of each month, the updated amounts of the limits established in this Resolution, as well as the margins for application generated from the redemption of existing operations.

Sole Paragraph. It is incumbent upon the Central Bank of Brazil to disclose the criteria to be adopted in the case of the existence of margins for application, as ascertained in this article.

Art. 10 Financial institutions that contract operations in disobedience to the provisions of this Resolution will be obliged to pay to the Central Bank of Brazil, on the fifth business day of the second month subsequent to the transgression, the exact amount of the irregular contracting ascertained in the month of the occurrence of the event, updated by the TR or another index that comes to replace it, until the date of the payment.

Sole Paragraph. The value paid will not be subject to any remuneration and will remain unavailable while the committed irregularity persists.

Art. 11 Operations contracted under the auspices of Law No. 9,496 of September 11, 1997, will be gradually incorporated into the limits ascertained in the manner of Article 2 of this Resolution on the date of contracting, and their redemptions will be deducted from the referred limits upon the respective payments.

Art. 12 The Central Bank of Brazil is authorized to adopt the necessary measures for the fulfillment of the provisions of this Resolution.

Art. 13 This Resolution enters into force on the date of its publication.

Art. 14 Resolutions CMN Nos. 2,033 of December 9, 1993, 2,058 of March 23, 1994, 2,113 of October 19, 1994, 2,252 of March 1, 1996, 2,289 of June 24, 1996, 2,388 of May 22, 1997, 2,444 of November 14, 1997, Circulars Nos. 2,358 of August 18, 1993, 2,361 of September 1, 1993, 2,416 of April 6, 1994, 2,442 of July 4, 1994, 2,589 of July 12, 1995, and Communications Nos. 3,748 of March 2, 1994, 4,005 of June 30, 1994, and 4,135 of August 25, 1994, are repealed.

Brasília, December 26, 1997

Francisco Lafaiete de Pádua Lopes
President, in exercise

Obs.: Retransmitted due to date errors in Art. 14.