Circular No. 1130 — Authorization for Banco do Brasil S/A to Receive Rural Savings Book Deposits

CIRCULAR NO. 001130

We communicate that the Board of Directors of the Central Bank of Brazil, in a session on 10.02.87, based on Resolution No. 1,188 of 05.09.86, decided:

a) to authorize Banco do Brasil S.A. to receive rural savings book deposits, observing the norms established for free savings deposits by Resolutions Nos. 1,235 and 1,236 and by Circular No. 1,102, all dated 30.12.86;

b) the resources captured in the manner of the preceding item shall have the following basic allocation:

I - 20% (twenty percent) in mandatory reserves to be maintained in federal public debt titles or in Letters of the Central Bank (LBC); and

II - 60% (sixty percent), at minimum, in credit operations for rural investment and others as per the norms outlined in the Rural Credit Manual (MCR);

c) the remaining resources may be applied in the following operations:

I - complementary agricultural credit, such as financing for the commercialization of agricultural and livestock products, including discounting of titles;

II - working capital operations for companies that industrialize agricultural and livestock products;

III - acquisitions of federal, state, and municipal public debt titles and of the Central Bank of Brazil;

IV - interbank deposits as referred to in Resolution No. 1,102 of 28.02.86.

2. The capture of resources, through rural savings book deposits, is restricted to the premises of Banco do Brasil S.A. that operate in rural credit.

3. The resources captured in the manner of this Circular must be applied in operations that have an update clause linked to the index used in savings deposits, and the interest will be calculated, at minimum, at a level equal to that of capture.

4. This condition shall be excepted for applications where the Law on Means of Payment comes to provide specific resources to cover the cost differential.

5. The percentage provided for in item 1, letter "b" of this Circular will be calculated based on the simple arithmetic mean of the balances of captured resources during the last 6 (six) months counted from the base date of its application.

Brasília-DF, February 12, 1987

Luiz Carlos Mendonça de Barros
Director

Hélio Ribeiro de Oliveira
Director