Regulatory Alerts2020-04-30 | Carta Circular 4042Circular Letter No. 4042: Procedures for Issuing Financial Notes and Debt Balance Calculation Methodology under the LTEL-LFG Line
The Central Bank of Brazil issued Circular Letter No. 4042 to establish the calculation methodology for the daily updated debt balance and the specific procedures for issuing Financial Notes under the Temporary Special Liquidity Line for Financial Note Acquisition with Asset Collateral (LTEL-LFG). The regulation mandates that the debt balance be updated daily using a formula based on the Selic rate and an additional surcharge, and requires financial institutions to complete the issuance registration by 1:00 PM on the issuance date. These procedures apply exclusively to institutions whose loan requests under this specific liquidity line have been authorized by the Central Bank's Collegiate Board.
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