Put Marcos Buzo – 06/04/2020

The National Monetary Council (“CMN”) temporarily prohibited, through Resolution No. 4,797/2020, the distribution of dividends and interest on equity to shareholders of financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

Furthermore, the increase in the remuneration of administrators, directors and advisors of financial institutions is also prohibited.

Furthermore, the repurchase of own shares and the reduction of capital of financial institutions are prohibited; all of these measures aim to guarantee the liquidity and financial health of banking institutions during the COVID-19 period.

So far, the CMN decision remains in force until September 30, 2020. It is worth noting that payments for the 2019 base year are authorized.

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