New Changes To The Brazilian Credit Guarantee Fund

At the meeting held on May 23, 2013, the Brazilian Monetary Council (Conselho Monetário Nacional - CMN) approved changes to the provisions that regulate the activity of Brazilian Credit Guarantee Fund (Fundo Garantidor de Crédito – FGC), which is a private institution responsible for the protection of checking/saving account holders and investors against financial institutions in case of intervention, liquidation or bankruptcy. These changes have been made by means of CMN Resolution No. 4222, of the same date, which deals with the by-laws and regulation of FGC.

The two main changes, already approved in the Assembly by the FGC, relate to: (i) the increase of the deposit guarantee for each deposit holder against institutions associated with FGC (ordinary guarantee) from R$ 70 thousand to R$ 250 thousand; and (ii) the inclusion among the guaranteed credits of the Agribusiness Credit Bill (Letra de Crédito do Agronegócio -LCA), which is a credit instrument issued by a