Circular Letter No. 2.998

CIRCULAR LETTER No. 002998 ------------------------ Clarifies procedures for the settlement of financial obligations between the Central Bank of Brazil and financial institutions, the other institutions authorized by it to operate, and non-financial individuals and legal entities. Based on the provisions of art. 4 of Circular 3.100 of 28 March 2002, we clarify that, as of 22 April 2002, financial obligations between the Central Bank of Brazil and financial institutions holding a Banking Reserves account shall be settled by means of fund transfer orders sent to the Reserve Transfer System - STR, through specific messages defined in the Brazilian Payment System Message Catalog, belonging to the SLB Services Group, except as provided in item 7. 2. The Central Bank of Brazil, when established in specific regulations, shall provide, through a message of the group provided for in the previous item, the information relating to the financial obligations for which the institutions are responsible. 3. The information referred to in item 2 shall be sent by 16:00 on the due date of the obligation. 4. The time limit defined in item 3 does not apply to operations resulting from Central Bank of Brazil interventions in the foreign exchange market. 5. Financial obligations between the Central Bank of Brazil and financial institutions and other institutions authorized by it to operate, not holding a Banking Reserves account, may be settled, as of 22 April 2002, in the manner provided for in this circular letter, in which case the Central Bank of Brazil must be informed of the financial institution holding a Banking Reserves account with which it has an agreement for this purpose. 6. The provisions of item 5 also apply to non-financial individuals and legal entities. 7. The financial obligations referred to in this circular letter, when established in specific regulations, shall be settled through indirect fund transfer orders covered in the regulation annexed to Circular 3.100 of 28 March 2002. This circular letter enters into force on the date of its publication. Brasília, 28 March 2002. Luis Gustavo da Matta Machado Head of Unit