Circular Letter No. 002123 — Clarifies Accounting Procedure for Repo Operations with Own-Emission Securities

CIRCULAR LETTER NO. 002123

TO
MULTIPLE BANKS

CLARIFIES ACCOUNTING PROCEDURE FOR REALIZING REPO OPERATIONS WITH OWN-ISSUANCE SECURITIES.

IN ACCORDANCE WITH THE PROVISIONS OF CIRCULAR NO. 1,592, OF 09.03.90, WE CLARIFY THAT:

ART. 1. LIABILITIES FROM REPO OPERATIONS, SECURED BY OWN-ISSUANCE SECURITIES, MUST BE RECORDED AS A DEBIT TO AN APPROPRIATE AVAILABILITY ACCOUNT AND A CREDIT TO 4.2.1.10.00-6 REPURCHASES TO SETTLE - OWN PORTFOLIO, SUBTITLE 4.2.1.10.80-0 OWN-ISSUANCE SECURITIES, WITHOUT REFLECTIONS IN THE LIABILITY ACCOUNT 4.1.5.10.00-9 TIME DEPOSITS OR OTHER APPROPRIATE ACCOUNT AND IN THE ASSET 1.3.2.10.00-7 FIXED-INCOME SECURITIES - LINKED TO REPURCHASES.

ART. 2. THIS CIRCULAR LETTER ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

BRAZILIA (DF), NOVEMBER 27, 1990
DEPARTMENT OF RULES OF THE FINANCIAL SYSTEM ANTONIO CAETANO FILHO HEAD