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Provisional Measure No. 1,980-23, Of 27 September 2000

Original Language Title: Medida Provisória nº 1.980-23, de 27 de Setembro de 2000

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PROVISIONAL MEASURE NO. 1.980-23, OF September 27, 2000.

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

THE PRESIDENT OF THE REPUBLIC, in the use of the assignment that confers it on 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 Public Debt Internal Treasury issuance of the National Treasury Board in power of the Central Bank of Brazil.

Art. 2º Stay the National Treasury authorized to make application in securities of the internal Federal Furiliary Public Debt in power of the Central Bank of Brazil, with the mutual commitment of reversal of the operation, noted that the rate of return of the operation should be equal to the profitability intrinsic 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 reserve reversals will be considered:

I-se positive, obligation of the Central Bank of Brazil to with the Union, and shall be the object of payment until the tenth working day of the subsequent financial year to 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 to 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 of understanding between the date of the annual balance sheet ascertaining and the date of the effective payment, the parcels 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 Brazil.

§ 3º The constitution of reserves of which it treats the caput could not be greater than twenty-five percent of the result ascertained in the balance sheet of the Central Bank of Brazil.

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

Art. 5º The Union will transfer to the Central Bank of Brazil, until March 31, 1999, the value corresponding to the balance of the heading?Result to Compense?, 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 Central Bank of Brazil, computed to 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 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 up to the date of the operation.

Art. 7º 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 provisions of the caput may 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-credits arising from the debts renegotiated pursuant to Law No. 8,727, of November 5, 1993;

III-credits belonging to the heading?Result to Comthink? 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 until the date of the transfer.

Art. 8º 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 shares 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 for 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 international bodies will be deposited in the Central Bank of Brazil.

Art. 9º The effective transfers to the Union of the participations in the international bodies of which it treats art. 8º, § 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. 8º, caput, is the responsibility of the Central Bank of Brazil.

Art. 10. For payment of the values to which the arts are referred. 3º, inciso II, 5º and 8º, § 1º, may be issued securities of the internal Federal Corporate Debt appropriate to the monetary policy purposes, with characteristics set out by the Minister of State for Finance.

Art. 11. The Ministry of Finance, through the Federal Office of Control, will afar the correctness of the figures relating to the credits and obligations transferred to the Union to which the arts relate. 7º, caput and § 1º, and 8º, § 1º, 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. 3º.

Art. 12. They are convalidated the acts practiced on the basis of the Provisional Measure No. 1.980-21, of July 28, 2000.

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, September 27, 2000; 179º of Independence and 112º of the Republic.

fernando cardoso henrique

Amaury Guilherme Bier

Martus Tavares