Circular Letter No. 2.839

CIRCULAR LETTER No. 002839 ------------------------ Discloses criteria for calculation of charges on lines of financial assistance from the Central Bank of Brazil. Taking into account the issuance of Circulars Nos. 2.868, 2.869, 2.870, and 2.871, all dated 04.03.99, we inform that the financial charges on financial assistance operations based on the SELIC Rate shall be calculated according to the following criteria: I - the daily factor, applied to the outstanding balance of the operations for the purpose of calculating the financial charges on a given day, shall be calculated according to the following formula: 1/252 Fd = (F ) * (1 + j/100) , where: SELIC Rate Fd = daily factor F = daily factor of the SELIC Rate SELIC Rate j = percentage increase, when applicable, in the form of an annualized effective rate. II - the daily factor referred to shall be calculated with truncation after the eighth decimal place, disregarding subsequent places. 2. For existing operations whose financial charges are referenced to the Central Bank Basic Rate (TBC) and the Central Bank Assistance Rate (TBAN), the following criteria shall be applied, observing the definitions in item 1 hereof, as provided in art. 6 of Circular No. 2.868, of 04.03.99: I - financial charges referenced to the TBC: Fd = F SELIC Rate II - financial charges referenced to the TBAN: 1/252 Fd = F * ((1 + (j + 2)/100)) SELIC Rate 3. The daily factors of the SELIC Rate may be obtained in option 1 of transaction PTAX860 and the daily factors for calculating financial charges in option 22 of transaction PTAX880 of the Central Bank Information System (SISBACEN). Brasilia, 05 March 1999. Luis Gustavo da Matta Machado Head of Unit