Regulatory Alerts2020-06-23 | Circular 4029Circular No. 4029 — Amends Circular No. 3,975 to Establish Deductibility of Credit Balances for Working Capital Financing and DPGE Applications
The Executive Board of the Central Bank of Brazil issued Circular No. 4029 to amend Circular No. 3,975 by introducing specific deductions from the mandatory reserve requirements for savings deposits. These deductions apply to working capital credit operations for small businesses and investments in Special Guarantee Time Deposits (DPGE) between June and December 2020, subject to strict minimum thresholds and institutional eligibility criteria. Failure to meet the minimum deduction amounts results in the loss of remuneration on the corresponding reserve balance.
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