Check out the main measures enacted by the authorities to minimize the impacts of the coronavirus pandemic.

Debt Renegotiation

The National Monetary Council (CMN) approved some measures to facilitate the debt renegotiation and expand the granting of credit by banks, inclusing (i) the adoption of temporary risk criteria to be observed by financial institutions for restructuring credit operations carried out until 09.30.2020; exempting the the reorganizations carried out up to that date from the classification of problematic assets; and (ii) the decrease in the minimum amount of reserve resources required from financial institutions to operate in the market (“capital cushion” or “leverage”).

Alternative Credit Lines

Aiming the maintenance of the financial capacity of Brazilian companies, the Provisional Measure no. 944, dated April 20th, 2020, established the Emergency Program to Support Jobs, which led the National Bank of Economic and Social Development (BNDES) to announce the availability of three special alternative credit lines. To see our article on BNDES Special Alternatives Credit Lines, click here.

IPOs

The Securities and Exchange Commission (CVM) extended, by up to 180 (one hundred and eighty) days, the maximum duration of the interruption of the analysis period for requests for registration of public offers for distribution. The deliberation was revoked, from 20.04.2020, applying to interruption requests submitted from then on the maximum period of 60 (sixty) working days

Distance Contracting

Federal Decree No. 10278, dated March 18th, 2020, standardized procedures that are essential to the legal security of distance contracting, and established the technique and the requirements for digitized documents, whether public or private, produce all legal effects. In this regard, it was also edited the Provision no. 94 of the National Council of Justice, which regulated the reception of digitalized titles in Real Estate Registries in the locations where quarantine regimes were established.

Data Sharing

Aiming to simplify the attendance provided to users of public services, Federal Decree No. 10.279, dated 3.18.2020, regulated the procedure for data sharing within the scope of the Federal Public Administration. Also, Decree 10,332/2020 was published, establishing the Digital Government Strategy for the period from 2020 to 2022, to elaborate a policy of data sharing among the federal government agencies, as well as the unification, in a virtual environment, of all the digital public services offered by the institutions that integrate the federal administration.

Emission of electronic duplicates

The Brazilian Central Bank established the rules for the issuance of electronic trade acceptance bill, a measure that shall stimulate the granting of credit to small and medium companies. The bond will be negotiated by an automated bookkeeping system, managed by a bookkeeping entity regulated and supervised by the Central Bank. The new regulation grants more quality to the asset, expanding the financing capacity of the companies that hold the bonds, insofar as they will have more facility to share with financiers the information on the receivables, favoring the competition and reducing the spread in the operations with this credit bond. The new rules are regulated by Circular No. 4,016 and Resolution No. 4,815 and entered into force on 1 June 2020.

General Data Protection Regulation

Provisional Measure no. 959/2020  had postponed, to May 3rd, 2021, the implementation of Law No. 13.709/2018, the Brazilian General Data Protection Regulation, which regulates the treatment and collection of data of Brazilian and people in the Brazilian territory, establishing penalties for the non-compliance in cases of a data breach and other irregularities. However, in a vote on Bill no. 1179 of 2020, the Senate resumed the entry into force of the LGPD for August 2020, leaving only the imposition of fines for noncompliance to August 2021. The final version of the Bill was forwarded to President Jair Bolsonaro for sanction.

Our teams in Rio de Janeiro and São Paulo are available to answer any questions about the above measures.