Circular Letter No. 2.908

CIRCULAR LETTER No. 002908 ------------------------ Clarifies the calculation of the portion of Required Net Equity (PLE) to cover the risk arising from the exposure of operations denominated in Real and remunerated based on fixed interest rates to the variation of interest rates practiced in the market, as addressed in Circular No. 2.972 of 2000. In view of the provisions of art. 4 of Resolution No. 2.692 of 24 February 2000, and art. 1 of Circular No. 2.972 of 23 March 2000, we clarify that, for the purpose of calculating the portion of Required Net Equity (PLE) to cover the risk arising from the exposure of operations denominated in Real and remunerated based on fixed interest rates to the variation of interest rates practiced in the market (EC (Juros Pre), t), institutions must maintain, for each business day, from 3 April 2000, regardless of the disclosure of the factors Mt, SIGt, RO and k, the marked-to-market values of their flows (VMTMit) in accordance with the definition contained in the aforementioned Circular. 2. The Central Bank of Brazil, on 29 May 2000, will begin the daily disclosure of the factors mentioned in the previous item, as well as make available a list containing the daily factors for the months of April and May. Brasilia, 4 April 2000. DEPARTMENT OF REGISTRATION AND DEPARTMENT OF NORMS INFORMATION OF THE FINANCIAL SYSTEM OF THE FINANCIAL SYSTEM Sergio Almeida de Souza Lima Carlos Eduardo Sampaio Lofrano Head Head DEPARTMENT OF STUDIES DEPARTMENT OF SUPERVISION AND RESEARCH Alexandre Antonio Tombini Paulo Sergio Cavalheiro Head Interim Head Notes: SIG = Sigma RO = Ro.