Circular Letter No. 2,999

CIRCULAR LETTER No. 002999 ------------------------ Provides for the procedures to be observed in the submission of information within the scope of the Credit Risk Center. For the purposes of providing the information referred to in Circular 3,098, of 20 March 2002, the transactions contained in the Analytical Balance Sheet, document 1 of the Chart of Accounts for Institutions of the National Financial System - Cosif, Cadoc 4010, recorded in the following subgroup, subgroup breakdown, accounting titles and subtitles, must be considered, which must be reported at their book value, in the manner defined in Circular Letter 2,899, of 1 March 2000, including with regard to housing finance transactions covered by FCVS: 1.4.3.00.00-2 Interfinancial Transfers; 3.0.1.30.00-5 BENEFICIARIES OF GUARANTEES PROVIDED; 3.0.1.85.00-5 CO-OBLIGATIONS IN CREDIT ASSIGNMENTS; 3.0.1.90.00-7 BENEFICIARIES OF OTHER CO-OBLIGATIONS; 3.0.9.58.00-5 CREDITS ASSIGNED WITHOUT CO-OBLIGATION TO NON-FINANCIAL AFFILIATES; 3.0.9.80.00-4 SFH - FINANCING INSTALLMENTS TO BE RELEASED; 3.0.9.86.10-1 Amounts of Credits Contracted to be Released - Legal Entities; 3.0.9.86.20-4 Amounts of Credits Contracted to be Released - Natural Persons; 3.1.0.00.00-0 CLASSIFICATION OF THE CREDIT PORTFOLIO; 9.0.9.60.10-5 Credits Written Off in the last 12 months; 9.0.9.60.15-0 Credits Written Off between 13 and 48 months. 2. For the completion of the information referred to in this Circular Letter, the instructions contained in the readme files available at the electronic address www.bcb.gov.br must be observed. 3. For the purposes of the Credit Risk Center system, the following is considered: I - credit transaction with directed resources: that carried out with a rate established in government programs or transfers; II - credit transaction with free resources: that carried out with an interest rate freely agreed between the client and the financial institution, including rural credit, real estate credit or credit with the public sector transactions that have this characteristic; III - project financing transaction: that with a contracted term exceeding 360 days, in which there is a link between the cash flow generated by the project and the payment of the credit line granted; IV - maturity date: that foreseen for payment of the last installment or termination of the contract; V - total responsibility: the amount of active transactions, transactions written off as loss, co-obligations and guarantees provided to the client and interfinancial transfers; VI - risk classification of the transaction: that provided for in art. 1 of Resolution 2,682, of 21 December 1999; VII - risk classification of the client: that carried out in compliance with the provisions of art. 2, caput and item I, of Resolution 2,682, of 1999, exclusively for the debtor; and VIII - renegotiated transactions: those carried out under the terms of art. 8 of Resolution 2,682, of 1999. 4. For the completion of the information contained in
the documents referred to in art. 2 of Circular 3,098, of 2002, the institutions listed in that provision must: I - in the "contract code" field, inform the internal code of the transaction, and duplication for the same client, modality and submodality of transaction is not permitted; II - for credit transactions contracted with more than one client: a) when dealing with only one Cadastro de Pessoas Físicas (CPF), list its holder as the sole client; and b) when dealing with more than one Cadastro Nacional de Pessoa Jurídica (CNPJ) or CPF, fill in the outstanding balance proportional to each client or the main borrower; III - for credits contracted to be released, inform the expected disbursement as the transaction modality, separately from the released amounts; IV - for assumed co-obligations and guarantees provided, interfinancial transfers and credits contracted to be released, inform the risk category according to the code corresponding to the risk classification of these transactions; V - for the purposes of distribution of maturities, inform: a) the flow of scheduled disbursement of contracted credits to be released in the field amounts due; and b) the term of guarantees provided and co-obligations assumed due to the maturity of the contract; VI - in the case of operations with an indefinite maturity term or with the maturity date postponed as a result of a regulatory determination without the definition of new contractual conditions, report the amount of the debt as due with an indefinite term; VII - in the case of credits written off as a loss, report the operations individually, and for those existing on the base date of August 2002, consolidated submission by client is permitted, without identification of the code of the written-off contract; VIII - in the fields "guarantor provider" and "non-fidejussory guarantee, insurance and similar", report all guarantees, insurance and similar instruments linked to the operation; IX - in the field "effective annual rate", report the rate equivalent to all charges and other expenses incurred in the normal course of the operation; X - in the field "CEP", report the postal address code (CEP) of the branch granting the operation; XI - in the field "location", report the federation unit of the branch granting the operation; XII - in "vendor" operations and in operations that have third-party intervention, report the position of each final borrower, indicating the intervening/guaranteeing company of the operation in the field "guarantor provider"; XIII - in advance operations on exchange contracts, report the respective added values of income receivable; and XIV - with respect to relevant renegotiated operations, including those recovered after having been written off as a loss, report the code of the contract prior to renegotiation or, in the case of debt composition, that of the contract with the highest value. 5. To fill out Document 3020 - Individualized Credit Risk Data, the following data relating
to the clients holding these operations must be reported: I - in the field "start of relationship with the client", the date of opening of the current account or another earlier date considered relevant for credit risk assessment; II - in the field "total value of discounted securities", the nominal value of the securities presented for discount by the assignor with maturity in the month prior to the base date; and III - in the field "value of discounted and settled securities", the nominal value of the securities presented for discount by the assignor with maturity in the month prior to the base date and settled with up to seven days of delay, disregarding securities written off at the request of the assignor or extended to the month of the base date or later. 6. In credit assignment, securitization and negotiation of bank credit notes or bank credit note certificates to the assigning institution, in the cases of having as counterparty a company directly or indirectly linked, as defined in Resolution 2.107 of 31 August 1994, or of co-obligating itself or retaining risk in any other form, it must report: I - these operations as if the respective credits were recorded in its assets, observing the field "nature of the operation"; II - additionally, the co-obligation or any other form of risk retention, indicating in the fields: a) "contract code", the credit assignment, securitization or negotiation of bank credit notes or bank credit note certificates contract; b) "client" and "client type", the assignee; c) "nature of the operation", own credits; and d) "modality of the operation", that of the co-obligation. 7. The assignee financial institution, in the case of acquiring credits, bank credit notes or bank credit note certificates with co-obligation or any other form of risk retention by a financial institution, must report only the position of these contracts, indicating in the fields: I - "contract code", the credit assignment, securitization or negotiation of bank credit notes or bank credit note certificates contract; II - "client" and "client type", the client identification codes without CPF; III - "guarantor provider", the assigning institution; and IV - "nature of the operation", own credits. 8. For Document 3030 - Aggregated Credit Risk Data, from the base date of May 2002, the number of operations, the number of clients, the provision constituted and the maturity distribution grouped by: I - client type; II - operation value range; III - control type; IV - risk classification of the operation; V - nature of the operation; VI - modality of the operation; VII - origin of funds; VIII - location; IX - double term for provisioning; X - linkage to foreign currency; and XI - special characteristic. 9. For the purposes of the provisions of the previous item, the submission of the following information is permitted until the base date of August 2002: I - provision constituted; II - linkage to foreign currency; III - origin of funds; IV -
location; and V - special characteristic. 10. For Document 3020 - Individualized Credit Risk Data, from the May 2002 base date, the following must be reported, in relation to transactions: I - with an accounting value of less than R$5,000.00 (five thousand Reais) of clients with total liability greater than R$5,000.00 (five thousand Reais) on the base date, consolidated by client: a) the risk classification of the transaction; b) the modality of the transaction; c) the nature of the transaction; d) the maturity distribution; e) the number of transactions; f) the exchange variation; and g) the special characteristic; and II - individualized with an accounting value equal to or greater than R$5,000.00 (five thousand Reais) on the base date: a) the contract code; b) the nature of the transaction; c) the modality of the transaction; d) the origin of the funds; e) the maturity date of the transaction; f) the risk classification of the transaction; g) the maturity distribution; h) the exchange variation; i) the special characteristic; j) the CEP; k) the reference rate or indexer; l) the effective annual rate; m) the contracting date of the transaction; n) the non-fiduciary guarantee, insurance and similar; o) the provider of fiduciary guarantee; and p) the type of provider of fiduciary guarantee; and III - individualized with an accounting value equal to or greater than R$5,000,000.00 (five million Reais) on the base date, in addition to the information referred to in the previous item: a) the value of the non-fiduciary guarantee, insurance and similar; b) the date of the last valuation of the guarantee; c) the provision constituted; d) the type of renegotiation; e) the renegotiation date; and f) the code of the main renegotiated contract or recovered from loss. 11. For the purposes of the provisions of the previous item, the submission of the following information is permitted until the August 2002 base date: I - exchange variation; II - special characteristic; III - origin of the funds; IV - CEP; V - reference rate or indexer; VI - effective annual rate; VII - contracting date of the transaction; VIII - non-fiduciary guarantee, insurance and similar; IX - provider of fiduciary guarantee; X - type of provider of fiduciary guarantee; XI - all information referred to in item III of item 10; XII - detailed breakdown of the modality of the transaction; and XIII - credits written off as loss on an individualized basis by transaction. 12. For Document 3020 - Individualized Credit Risk Data, from the May 2002 base date, the following must be reported, in relation to registration data: I - referring to the holders of the transactions dealt with in items I and II of item 10: a) the identification of the client; b) the type of client; c) the start date of the relationship with the client; d) the type of control; and e) the code of the economic conglomerate; and II - referring to the holders of the transactions dealt with in item III of item 10, in addition to
the information referred to in the previous item: a) the risk classification of the client; b) the total value of discounted securities; and c) the value of discounted and settled securities. 13. For the purposes of the provisions of the previous item, the submission of the following information is permitted until the August 2002 base date: I - code of the economic conglomerate; and II - all information referred to in item II of item 12. 14. For Document 3026 - Complementary Individualized Credit Risk Data, the following must be reported: I - the code of the economic conglomerate; II - the identification of the participants of the economic conglomerate; and III - the type of participant of the economic conglomerate. 15. In addition to the information referred to in the previous item, the following information will be required, upon request of this Autarchy: I - balance sheet data; and II - risk classification assigned by a risk rating agency, type of classification and agency. Brasilia, 2 April 2002. Department of Norms of the Department of Indirect Supervision Financial System Carlos Eduardo Sampaio Lofrano Vanio Cesar Pickler Aguiar Chief Chief Department of Informatics Jose Antonio Eirado Neto Chief