Circular Letter No. 3.043

CIRCULAR LETTER No. 003043 ------------------------ 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 recorded in the Analytical Balance Sheet, document 1 of the Chart of Accounts for Institutions of the National Financial System - Cosif, Cadoc 4010, under the following subgroup, subgroup breakdown, and accounting titles and subtitles, must be considered, and must be reported at their book value, as defined in Circular Letter 2.899, of 1 March 2000, including with regard to housing finance transactions covered by the Salary Variation Compensation Fund (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 3.0.9.58.20-1 Non-Financial Affiliates 3.0.9.80.00-4 SFH - FINANCING INSTALLMENTS TO BE RELEASED 3.0.9.86.10-1 Amounts of Credit Contracted to be Released - Legal Entities 3.0.9.86.20-4 Amounts of Credit Contracted to be Released - Individuals 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. To fill in the information referred to in this circular letter, the instructions available at the electronic address http://www.bcb.gov.br/centralderisco must be observed. 3. For the purposes of the Credit Risk Center system, the following are considered: I - credit transaction with earmarked funds: one carried out mandatorily at a rate established in government programs or transfers; II - credit transaction with free funds: one carried out at an interest rate freely agreed between the client and the financial institution, including rural credit, real estate credit, or public sector credit transactions that have this characteristic; III - project financing transaction: one 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: the date scheduled for payment of the last installment or termination of the contract; V - total liability: 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: the one provided for in art. 1 of Resolution 2.682, of 21 December 1999; VII - risk classification of the client: the one carried out in compliance with the provisions of art. 2, caput and item I, of Resolution 2.682, of 1999, exclusively for the debtor; VIII - renegotiated transactions: those carried out under the terms of art. 8 of Resolution 2.682, of 1999, and that imply an increase in credit risk; and IX - authorization: the one provided for in art. 3 of Resolution
2.724, of 31 May 2000, required for the institution to consult the client's information. 4. To fill in 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, provide the internal code of the transaction, and duplication for the same client and transaction type is not permitted; II - for credit transactions contracted with more than one client: a) when only one Individual Taxpayer Registry (CPF) is involved, list the holder as the sole client; and b) when more than one National Legal Entity Registry (CNPJ) or CPF is involved, fill in the outstanding balance proportional to each client or the main borrower; III - for credits contracted to be released, report the expected disbursement as the transaction type, separately from the released amounts; IV - for assumed co-obligations and guarantees provided, interfinancial transfers, and credits contracted to be released, report the risk category according to the code corresponding to the risk classification of these transactions; V - for the purpose of maturity distribution, report: a) the scheduled disbursement flow of credits contracted to be released in the amounts due field; and b) the term of guarantees provided and co-obligations assumed due to the contract maturity; VI - in the case of transactions with an indefinite maturity term or with the maturity date postponed due to a regulatory determination without the definition of new contractual conditions, report the debt amount as due with an indefinite term; VII - in the case of credits written off as loss, report the transactions individually, and for those that have this classification as of the October 2002 base date, consolidated submission by client is permitted, without identifying the code and type of the written-off contract; VIII - in the "surety guarantor" and "non-surety guarantee, insurance and similar" fields, report all guarantees, insurance, and similar instruments linked to the transaction; IX - in the "effective annual rate" field, report the effective rate equivalent to the fixed portion of the interest applicable during the normal course of the transaction; X - in the "CEP" field, report the Postal Address Code (CEP) of the branch granting the transaction; XI - in the "location" field, report the federative unit of the branch granting the transaction; XII - in "vendor" transactions and in transactions involving the intervention of third parties, inform the position of each final borrower, indicating the intervening/guaranteeing company of the transaction in the field "surety provider"; XIII - in advance payment transactions on exchange contracts, do not inform those entered into between financial institutions and, for the others, inform their respective added values of rents receivable; XIV - with respect to renegotiated relevant transactions, including those recovered after being written off as a loss, inform
the code of the contract prior to renegotiation or, in the case of debt restructuring, the code of the contract with the highest value; and XV - in the balance sheet data, inform the individualized positions of the client and consolidated positions of the client's group, available for the last three financial statements, identifying the companies considered in each balance sheet. 5. To fill out Document 3020 - Individualized Credit Risk Data, the following data regarding the clients holding these transactions must be informed: I - in the field "start of relationship with the client", the date of opening of the current account or another 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 transferor 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 transferor 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 transferor or extended to the month of the base date or later; IV - in the field -client size-, the classification assigned, in the internal risk assessment processes, to legal entity clients, segregating them as micro, small, medium or large. 6. In credit assignment, securitization and negotiation of bank credit notes or bank credit note certificates transactions, the assigning institution, in the case of co-obligation or retaining risk in any other form, must: I - inform these transactions as if the respective credits were recorded in its assets, observing the field "nature of the transaction"; II - inform, 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 transaction", own credits; and d) "modality of the transaction", the modality "co-obligation"; III - consider these credits in determining the "total value of discounted securities" and the "value of discounted and settled securities", if applicable. 7. In the case of credit assignment without co-obligation whose counterparty is a company directly or indirectly related, as defined in Resolution 2.107 of 31 August 1994, not obligated to provide information to the Central Credit Risk, the assigning institution must observe the provisions of item 6, sections I and III. 8. The financial institution, in the event of acquiring credits, bank credit notes or bank credit note certificates with co-obligation or any other form of risk retention by the assignor, must inform 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", the identifying code of the assigning institution; III - "surety provider", the assigning institution; and IV - "nature of the transaction", own credits. 9. For Document 3030 - Aggregated Credit Risk Data, starting from the base date of May 2002, the number of transactions, the number of clients, the provision constituted and the maturity distribution must be informed, grouped by: I - client type; II - transaction value range; III - control type; IV - transaction risk classification; V - nature of the transaction; VI - modality of the transaction; VII - origin of funds; VIII - location; IX - double term for provisioning; X - foreign currency linkage; and XI - special characteristic. 10. For the purposes of the provisions of the previous item, the sending is optional: I - until the base date of August 2002, of the following information: a) foreign currency linkage; b) origin of funds; c) location; and d) provision constituted; II - until the base date of October 2002, of the information referring to -special characteristic-. 11. For Document 3020 - Individualized Credit Risk Data, from the May 2002 reference date, the following must be reported, in relation to transactions: I - with a book value of less than R$5,000.00 (five thousand Reais) of clients with total liability equal to or greater than R$5,000.00 (five thousand Reais) on the reference date, consolidated by client: a) the risk classification of the transaction; b) the type of 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 - individually identified with a book value equal to or greater than R$5,000.00 (five thousand Reais) on the reference date: a) the contract code; b) the nature of the transaction; c) the type of transaction; d) the origin of 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 postal code (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 the fiduciary guarantee; and p) the type of provider of the fiduciary guarantee; and III - individually identified with a book value equal to or greater than R$5,000,000.00 (five million Reais) on the reference date, in addition to the information referred to in item II: a) the value of the non-fiduciary guarantee, insurance and similar; b) the date of the last appraisal of the guarantee; c) the provision constituted; d) the renegotiation date; e) the code of the main renegotiated or loss-recovered contract; and f) the type of the main renegotiated or loss-recovered contract. 12. For the purposes of the provisions of the previous item, the
submission of the following is optional: I - the following information up to the August 2002 reference date: a) exchange variation; b) detailed breakdown of the type of transaction; c) reference rate or indexer; d) postal code (CEP); e) effective annual rate; f) contracting date of the transaction; g) provision constituted; h) origin of funds; II - the following information up to the October 2002 reference date: a) special characteristic; b) credits written off as losses on an individualized basis per transaction; III - the following information for transactions with a book value equal to or greater than R$5,000,000.00 (five million Reais) up to the October 2002 reference date: a) non-fiduciary guarantee, insurance and similar; b) provider of the fiduciary guarantee; c) type of provider of the fiduciary guarantee; d) value of the non-fiduciary guarantee, insurance and similar; e) date of the last appraisal of the guarantee; f) renegotiation date; g) code of the main renegotiated or loss-recovered contract; and h) type of the main renegotiated or loss-recovered contract; IV - up to the February 2003 reference date, for transactions with a book value equal to or greater than R$5,000.00 (five thousand Reais) and less than R$5,000,000.00 (five million Reais), the following information: a) non-fiduciary guarantee, insurance and similar; b) provider of the fiduciary guarantee; and c) type of provider of the fiduciary guarantee. 13. For Document 3020 - Individualized Credit Risk Data, from the May 2002 reference 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 12: a) the identification of the client; b) the type of client; c) the size of the client; d) the start date of the relationship with the client; e) the type of control; f) the code of the economic conglomerate; and g) the authorization; II - referring to the holders of the transactions dealt with in item III of item 12, in addition to the information referred to in item I: a) the risk classification of the client; b) the total value of discounted securities; and c) the value of discounted and settled securities. 14. For the purposes of the provisions of the previous item, the submission of the following is optional: I - up to the August 2002 reference date, the following information: a) code of the economic conglomerate; and b) risk classification of the client; II - up to the October 2002 reference date: a) size of the client; b) the other information referred to in item II of item 13; c) authorization. 15. 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. 16. In addition to the information referred to in item 15, the following information will be required, upon
request by this Autarchy: I - balance sheet data; and II - risk classification assigned by a risk rating agency, type of classification and agency, if the institution uses such information in its risk assessment processes. 17. In the case of a court order, the exclusion or alteration of information must be registered by the financial institution, in a specific transaction to be made available, observing the reference date, the period for compliance with the order and the judicial determination. 18. Information covered by the court order, for reference dates subsequent to the reference date mentioned in item 17, must continue to be submitted without modifications in Documents 3020 - Individualized Credit Risk Data and 3030 - Aggregate Credit Risk Data, while their values are recorded in the accounts subject to submission to the Central Credit Risk, and: I - in the case of exclusion, the system will automatically verify the period for compliance with the order; and II - in the case of alteration, in addition to the unmodified individualized information present in Document 3020, the result of the determined rectification and the information not covered by the court order must be submitted. 19. Carta-Circular 2.999, of 2 April 2002, is revoked. Brasília, 26 September 2002. Department of Indirect Supervision Department of Norms of the Financial System Vânio Cesar Pickler Aguiar Carlos Eduardo Sampaio Lofrano Head Head --------------------------------------------------------------------- Note: retransmitted due to correction in item 14, subsection II, subitem "b".