Resolution CMN No. 3574 — Establishes Deadlines and Complementary Provisions for Implementation of Articles 3 and 4 of Provisional Measure No. 432 of May 27, 2008

RESOLUTION NO. 003574

Establishes the deadlines and complementary provisions for the implementation of the content in arts. 3 and 4 of Provisional Measure No. 432, of May 27, 2008.

THE CENTRAL BANK OF BRAZIL, in accordance with art. 9 of Law No. 4,595, of December 31, 1964, makes public that the MONETARY COUNCIL, in a session held on May 29, 2008, considering the provisions of arts. 4, item VI, of the aforementioned Law, 4 and 14 of Law No. 4,829, of November 5, 1965, 5 of Law No. 10,186, of February 11, 2001, and 41 of Provisional Measure No. 432, of May 27, 2008,

RESOLVES:

Art. 1. The following deadlines are established for the implementation of the provisions in arts. 3 and 4 of Provisional Measure No. 432, of May 27, 2008, regarding the operations covered by them:

I - until September 30, 2008, for borrowers of the operations referred to in art. 4 of the Provisional Measure to regularize their status and thus qualify for the benefit assured therein;

II - until September 30, 2008, for borrowers to express interest in liquidating the installments of overdue interest or in contracting a new credit operation under the conditions established in art. 2 of this Resolution;

III - until December 31, 2008, for the settlement of the balance of overdue interest installments.

Art. 2. The contracting of new financing for the liquidation of the value calculated for the overdue interest installments, as provided in art. 3 of Provisional Measure No. 432, of 2008, must comply with the following conditions:

I - operations backed by resources from the Constitutional Financing Funds of the North (FNO), Northeast (FNE), or Center-West (FCO):

a) source of resources: Constitutional Financing Funds;

b) credit risk: maintenance of the current risk of the operation;

c) credit limit: value calculated in the manner of item I of art. 3 of Provisional Measure No. 432, of 2008, after amortization of at least five percent of that value;

d) term: up to four years, with amortizations freely agreed upon between the debtor and the financial agent, considering the regular periodicity of revenue generation by the borrower, allowing for the maturity in 2009 to be set on a date different from that of subsequent years;

e) financial charges: the rates in effect for operations with resources from the Constitutional Financing Funds according to the borrower's classification;

f) guarantees: the usual ones for rural credit;

II - operations backed by resources of financial institutions or whose credit risk is that of the Union by virtue of Provisional Measure No. 2.196-3, of August 24, 2001:

a) source of resources: mandatory resources of rural credit;

b) credit risk: integral responsibility of the financial institution;

c) credit limit: value calculated in the manner of item I of art. 3 of Provisional Measure No. 432, of 2008, minus the amortization effected of at least five percent of that value;

d) term: up to four years, with amortizations freely agreed upon between the debtor and the financial agent, considering the regular periodicity of revenue generation by the borrower, allowing for the maturity in 2009 to be set on a date different from that of subsequent years;

e) financial charges: the rates in effect for operations with mandatory resources of rural credit;

f) guarantees: the usual ones for rural credit.

Art. 3. Regarding the operations referred to in art. 4 of MP No. 432, of 2008, the contractual addendum must state that the interest installments in default will be subject to the accumulated full variation of IGP-M and the originally contracted interest, starting from November 1, 2008, without prejudice to the application of default charges agreed upon and other applicable sanctions on the overdue installments, starting from their due dates.

Art. 4. Financial institutions will have until June 30, 2009, to inform the Secretariat of the National Treasury of the Ministry of Finance or, when dealing with operations with resources from the FNO, FNE, or FCO, to the Ministry of National Integration, of the number of renegotiated contracts and the amounts involved in the renegotiations and liquidations referred to in this Resolution.

Art. 5. In the process of formalizing the renegotiations referred to in this Resolution, the provisions of Resolution No. 2,682, of December 21, 1999, regarding the classification of the aforementioned operations, must be observed, except for those contracted with the risk of the Constitutional Financing Funds, which are subject to the norms of the management bodies of these Funds.

Art. 6. This Resolution enters into force on the date of its publication.

Brasília, May 29, 2008.

Henrique de Campos Meirelles
President