Provisional Measure No. 1980-16 Of 9 March 2000

Original Language Title: Medida Provisória nº 1.980-16, de 9 de Março de 2000

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###MPV-001980-0-016-09-03-2000 @ @ @

PROVISIONAL MEASURE # 1.980-16, OF March 9, 2000.

Provides on the financial relations between the Union and the Central Bank of Brazil, and gives other arrangements.

THE VICE PRESIDENT OF THE REPUBLIC, in the exercise of the post of CHAIRMAN OF THE REPUBLIC, using the attribution conferring you the art. 62 of the Constitution, adopts the following Interim Measure, with force of law:

Art. 1º The Union cash availabilities deposited at the Central Bank of Brazil will be remunerated, as of January 18, 1999, by the weighted average arithmetic rate of the intrinsic profitability of Federal Public Debt Securities domestic issue of issuance of the National Treasury in power of the Central Bank of Brazil.

Art. 2º It is the National Treasury authorized to make application in securities of the Internal Federal Public Debt in power of the Central Bank of Brazil, with the mutual commitment to reversal of the operation, observed that the return rate of the operation should be equal to the intrinsic profitability of the acquired securities.

Art. 3º The result ascertained in the annual balance sheet of the Central Bank of Brazil after computed eventual constitutions or reservation reversions will be considered:

I-if positive, obligation of the Central Bank of Brazil to the Union, and must be the subject of payment by the 10th business day of the subsequent financial year to that of the approval of the balance sheet by the National Monetary Council ;

II-if negative, Union obligation to the Central Bank of Brazil, and shall be the subject of payment by the 10th business day of the subsequent financial year to that of the approval of the balance sheet by the National Monetary Council.

§ 1º The values paid in the form of inciso I shall be intended exclusively for the payment of the Federal Public Debt, and shall be amortized, as a priority, to that existing one with the Central Bank of Brazil.

§ 2º During the period between the date of the annual balance sheet ascertainment and the date of the effective payment, the parcels of which treat the incisions I and II will have identical remuneration to that applied to the Union cash availabilities deposited at the Central Bank of Brazil.

§ 3º The constitution of reserves of which it treats caput may not be more than twenty-five per cent of the result ascertained in the balance sheet of the Central Bank of Brazil.

Art. 4º The balance sheet of the Central Bank of Brazil will consider the period 1º from January to December 31.

Art. 5º The Union shall transfer to the Central Bank of Brazil, until March 31, 1999, the value corresponding to the balance of the heading?Result to Compensar?, existing on the balance sheet of the Central Bank of Brazil at the end of the financial year 1997, plus remuneration identical to that applied to the Union cash availabilities deposited at the Central Bank of Brazil, computed up to the date of the effective transfer.

Art. 6º The Union shall promote, until March 31, 1999, the replacement of National Treasury Notes-Series L-NTN-L in power of the Central Bank of Brazil, up to the limit of the obligation arising from the Multi-Year Deposit Facility Agreement -MYDFA, by others liability securities of the National Treasury with characteristics similar to those of that external obligation, and the NTN-L shall be replaced by its nominal value, plus the respective remuneration pro rata applied to the date of the operation

Art. 7º shall be transferred to the Union, until March 31, 1999, the rights and obligations arising from the compulsory loans instituted by Decree-Law No. 2,288 of July 23, 1986, existing at the Central Bank of Brazil.

§ 1º The provisions of the caput may take effect with the transfer, by the Central Bank of Brazil to the Union, of the following assets:

I-issuance bonds of the National Treasury in power of the Central Bank of Brazil ;

II-credits arising from the debts renegotiated under Law No. 8,727 of November 5, 1993 ;

III-credits belonging to the heading?Result to Compensar? of which it treats art. 5º.

§ 2º The titles and credits mentioned in § 1º shall be transferred by their nominal value, plus the respective remuneration pro rata applied to the date of transfer.

Art. 8º The integralization of quotas and actions of international bodies to which the Union participates, except for those provided for in § 2º of this article, shall be the responsibility of the Union, the result of which shall be to incorporate the respective revenue and expenditure.

§ 1º The quotas and actions of the international bodies referred to in the caput, held by the Central Bank of Brazil, shall be transferred to the Union.

§ 2º The integralization of quotas and shares of the International Monetary Fund and the Bank for International Settlements is the responsibility of the Central Bank of Brazil, the result of which will incorporate the respective revenues and expenses.

§ 3º The havers of international bodies will be deposited at the Central Bank of Brazil.

Art. 9º Effective transfers to the Union of holdings in international bodies of which it treats art. 8º, § 1º, and the respective counterpart to the Central Bank of Brazil, will occur simultaneously and by December 31, 1999, on the basis of updated values, constant from the accounting of the Central Bank of Brazil on the date of the operations.

Single Paragraph. Until they take effect the transfers provided in the caput, the integralization referred to in art. 8º, caput, is the responsibility of the Central Bank of Brazil.

Art. 10. For payment of the values to which the arts refer. 3º, inciso II, 5º and 8º, § 1º, securities of the Internal Federal Public Debt may be issued appropriate to the purposes of monetary policy, with characteristics set out by the Minister of State of the Farm.

Art. 11. The Ministry of Finance, through the Federal Office of Control, will be in the way of the correctness of the figures for the credits and obligations transferred to the Union to which the arts refer. 7º, caput and § 1º, and 8º, § 1º, of this Provisional Measure.

Single Paragraph. The compensation of possible ascertained differences shall be promoted, updated with remuneration identical to that applied to the Union cash availabilities deposited at the Central Bank of Brazil, from the date of the respective transfer to the date of the effective compensation, when of the financial hits provided for in art 3º.

Art. 12. The acts practiced on the basis of the Provisional Measure No. 1.980-15, of February 10, 2000, shall be convalidated.

Art. 13. This Provisional Measure comes into force on the date of its publication.

Art. 14. Decree-Law No. 1,637 of October 6, 1978 and the art shall be repealed. 4º of Law No. 7,862 of October 30, 1989.

Brasilia, March 9, 2000 ; from 179º of Independence and 112º from the Republic.

milestone antonio of massiel olive tree

Amauri Guilherme Bier

Guilherme Gomes Dias