Resolution CMN No. 2613 — Provides for the purchase of fixed-income securities based on market rates and establishes conditions for active and passive operations in the financial market

RESOLUTION NO. 2613

Provides for the purchase of fixed-income securities based on market rates and establishes conditions regarding active and passive operations practiced in the financial market.

The CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595 of December 31, 1964, makes public that the MONETARY NATIONAL COUNCIL, in a session held on June 30, 1999, based on the provisions of Article 5 of Provisional Measure No. 1,750-51 of June 2, 1999, and Article 3, sole paragraph, of Law No. 9,365 of December 16, 1996, and considering the provisions of Article 4, items VI and VIII, of said Law No. 4,595 of 1964, and Law No. 4,728 of July 14, 1965,

RESOLVES:

Article 1. It is established that purchase operations of fixed-income securities that have been the object of final sale by the buyer, if carried out based on market prices, will not be characterized as repo operations, as provided in the Regulation annexed to Resolution No. 1,088 of January 30, 1986.

Sole Paragraph. In the case of operations involving fixed-income securities issued or accepted by the institution itself or by affiliated institutions, the provisions of Resolution No. 2,107 of August 31, 1994, and complementary regulation must be observed.

Article 2. Consequently, Article 27 of the Regulation annexed to Resolution No. 1,088 of 1986, with the modification introduced by Resolution No. 1,707 of May 14, 1990, is hereby amended, which shall now read as follows:

"Article 27. At the discretion of the Central Bank of Brazil, purchase operations of securities that have been the object of final sale by the buyer, carried out at prices other than market prices or that configure, in any way, the payment of defined profitability or established based on a remuneration parameter, may be characterized as repo operations, therefore subject to the norms of this Regulation."

Article 3. The Long-Term Interest Rate - TJLP may be used as a basis for remuneration for any active and passive operations practiced in the financial market, observed the conditions established by the Central Bank of Brazil.

Article 4. The term and the interval for readjustment of time deposits with automatic reinvestment, instituted by Resolution No. 2,172 of June 30, 1995, may be altered by the Central Bank of Brazil.

Article 5. The Central Bank of Brazil is authorized to adopt measures and issue complementary norms necessary for the execution of the provisions of this Resolution.

Article 6. This Resolution enters into force on the date of its publication, producing effects from August 2, 1999.

Article 7. Resolutions Nos. 1,707 of 1990 and 2,264 of March 28, 1996, are hereby revoked, effective from August 2, 1999.

Brasília, June 30, 1999

Arminio Fraga Neto
President