Resolution CMN No. 2669 — Amends the schedule for reducing the limit on permanent asset application

RESOLUTION NO. 2669

Amends the schedule for reducing the limit on the application of resources in Permanent Assets.

The CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law No. 4,595, of December 31, 1964, makes public that the NATIONAL MONETARY COUNCIL, in a session held on November 25, 1999, considering the provisions of Article 4, items VIII and XI, of the aforementioned Law,

RESOLVES:

Art. 1 Alter Articles 3 and 4 of Resolution No. 2,283, of June 5, 1996 - the first with the wording given by Resolution No. 2,481, of March 26, 1998 -, which shall enter into force with the following wording:

"Art. 3 The total of resources applied in Permanent Assets cannot exceed 80% (eighty percent) of the value of the adjusted net equity (PLA) in accordance with current regulation of financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

Sole Paragraph 1 For the purpose of verifying compliance with the limit provided for in this article, values corresponding to leasing operations are not included.

Sole Paragraph 2 Also excluded, for the purpose of verifying compliance with the limit provided for in this article, both from Permanent Assets and from PLA, are the values corresponding:

I - to the equity shares of the Central Clearing and Settlement Corporation for Securities - CETIP;

II - to the equity securities of stock exchanges and commodity and futures exchanges;

III - to the shares of clearing and custody companies, linked to stock exchanges and commodity and futures exchanges.

Sole Paragraph 3 The exclusion referred to in the preceding paragraph refers solely to the shares, equity securities, and shares held by financial institutions and other institutions authorized to operate by the Central Bank of Brazil to which it is permitted to carry out operations in the markets administered by those clearing and custody companies, stock exchanges, and commodity and futures exchanges.

Art. 4 The limit provided for in the previous article will be gradually reduced, observing the following schedule:

I - 70% (seventy percent) of PLA, from June 30, 2000;

II - 60% (sixty percent) of PLA, from June 30, 2002;

III - 50% (fifty percent) of PLA, from December 31, 2002.".

Art. 2 From the amount of resources applied in Permanent Assets, including the corporate participations referred to in Article 3 of Resolution No. 2,660, of October 28, 1999, the amount exceeding the percentages established in Articles 3 and 4 of Resolution No. 2,283, of 1996, with the wording given by this Resolution, respecting the reduction schedule fixed therein, must be deducted from PLA for the purpose of verifying the requirement of net equity compatible with the degree of risk of the asset structure, without prejudice to the application of sanctions provided for in current legislation and regulation.

Art. 3 This Resolution enters into force on the date of its publication.

Art. 4 Resolution No. 2,481, of 1998, and the sole paragraph of Article 3 of Resolution No. 2,660, of 1999, are hereby repealed.

Brasília, November 25, 1999

Arminio Fraga Neto
President