Provisional Measure No. 2,179-35, Of 27 July 2001

Original Language Title: Medida Provisória nº 2.179-35, de 27 de Julho de 2001

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PROVISIONAL MEASURE NO. 2.179-35, OF July 27, 2001

Disposes about the financial relations between the Union and the Central Bank of Brazil, and gives other arrangements.

THE PRESIDENT OF THE REPUBLIC, in the use of the attribution that confers him the art. 62 of the Constitution, adopts the following Provisional 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 the securities of the National Federal Foreign Exchange of issuance of the National Treasure in power of the Central Bank of Brazil.

Art. 2º The result ascertained in the semiannual balance sheet of the Central Bank of Brazil after computed eventual constitutions or reversal of reserves will be considered:

I? if positive, obligation of the Central Bank of Brazil to with the Union, owing to be the object of payment until the tenth working day subsequent to that of the approval of the balance sheet by the National Monetary Council;

II? if negative, obligation of the Union to the Central Bank of Brazil, and shall be the object of payment until the tenth working day of the subsequent financial year when the approval of the balance sheet by the National Monetary Council.

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

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

§ 3º The constitution of reserves of which it treats the caput will not be able to exceed twenty five percent of the result ascertained in the balance sheet of the Central Bank of Brazil.

Art. 3º The balance sheet of the Central Bank of Brazil will be semiannual and will consider the period from 1º January to June 30 and 1º from July to December 31.

Art. 4º The Union will transfer to the Central Bank of Brazil, until March 31, 1999, the value corresponding to the balance of the heading "Result a Comthinking", existing on the balance sheet of the Central Bank of Brazil at the end of the financial year 1997, plus identical remuneration to that applied to the Union cash availabilities deposited in the Bank Central Brazil, computed to the date of the effective transfer.

Art. 5º Will the Union 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 out of the Multi-Year Deposit Facility Agreement ? MYDFA, by other National Treasury liability securities with characteristics similar to those of the said external obligation, and the NTN-L shall be replaced by their nominal value, plus the respective remuneration pro rata applied to the date of the operation.

Art. 6º Will be transferred to the Union, until March 31, 1999, the rights and obligations arising from the compulsory loans instituted by the Decree-Law No. 2,288, of July 23, 1986, existing at the Central Bank of Brazil.

§ 1º The willing in the caput will be able to take effect with the transfer, by the Central Bank of Brazil to the Union, of the following assets:

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

II? claims arising from the debts renegotiated under the Act No. 8,727 of November 5, 1993;

III? credits belonging to the heading "Result a Comthinking" that it treats art. 4º.

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

Art. 7º A integralisation of quotas and shares of international bodies that the Union participates in, to the exception of those provided for in Paragraph 2º of this article, is the Union's responsibility, the result of which the respective revenue and expenditure will incorporate.

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

§ 2º The integralization of quotas and shares of the Monetary Fund International and the Bank of International Settlements is the responsibility of the Central Bank of Brazil, the result of which the respective revenue and expenditure will be incorporated.

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

Art. 8º The effective transfers to the Union of the participations in the international bodies of which it treats art. 7º, § 1º, and the respective counterpart to the Central Bank of Brazil, will occur simultaneously and until December 31, 1999, based on updated figures, constants of the accounting of the Central Bank of Brazil on the date of the operations.

Single paragraph. Until they take effect the expected transfers in the caput, the integralization referred to in the art. 7º, caput, is the responsibility of the Central Bank of Brazil.

Art. 9º Stay the authorized Union to acquire from the Central Bank of Brazil, until December 31, 2002:

I? contractual credits with federation states;

II? credits with foreign states;

III? credits arising from the reckoning with the National Institute of Social Insurance? INSS and with the Server Security Plan? PSS, as provided for in the art. 21 of Law No. 9,650 of May 28, 1998;

IV? issuance securities of the National Treasury, not suitable for the conduct of monetary and exchange rate policies.

Art. 10. For payment of the values to which the arts are referred. 2º, inciso II, 4º, 7º, § 1º, and 9º, domestic Federal Foreign Exchange securities appropriate to the purposes of monetary policy may be issued, with characteristics set out by the Minister of State of the Finance.

Art. 11. The Ministry of Finance, through the Federal Office of Control, will affert the correctness of the figures relating to the credits and obligations transferred to the Union, to which the arts are referred. 6º, caput and § 1º, 7º, § 1º, and 9º of this Provisional Measure.

Single paragraph. It shall be promoted to compensate for any established differences, updated with remuneration identical to that applied to the Union cash availabilities deposited in 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 the art. 2º.

Art. 12. They are convalidated the acts practiced on the basis of the Provisional Measure No. 2.179-34, of June 28, 2001.

Art. 13. This Interim Measure shall come into force on the date of its publication.

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

Brasilia, July 27, 2001; 180º of Independence and 113º of the Republic.

FERNANDO HENRIQUE CARDOSO

Pedro Malan

Martus Tavares