Circular No. 1663 - Conditions for Charging Financial Costs on Deficiencies in New Cruzado Deposits to the Central Bank

CIRCULAR N. 001663

TO
INSTITUTIONS OF THE NATIONAL FINANCIAL SYSTEM

ESTABLISHES CONDITIONS FOR CHARGING
COSTS INCURRED ON DEFICIENCIES IN
DEPOSITS OF NEW CRUZADOS TO THE
CENTRAL BANK OF BRAZIL - ARTICLE 17 OF PROVISIONAL MEASURE NO. 168, OF 15.03.90.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A SESSION HELD ON 11.04.90, BASED ON ARTICLE 20 AND TAKING INTO ACCOUNT THE PROVISIONS OF ARTICLE 17 OF PROVISIONAL MEASURE 168, OF 15.03.90, WITH THE WORDING CONFERRED UPON IT BY PROVISIONAL MEASURE NO. 172, OF 17.03.90, DECIDED:

ART. 1. THE BALANCE OF ACCOUNT 6110.01.10-6 - DEP. M.P.168 - BANKING RESERVES - IN CASH MAINTAINED BY COMMERCIAL BANKS AND INSTITUTIONS WITH COMMERCIAL PORTFOLIOS AT THE CENTRAL BANK MUST BE, DAILY, EQUIVALENT TO THE BALANCE OF ACCOUNT 4.9.7.99.00-4 - VALUES AT THE ORDER OF THE CENTRAL BANK - MP NO. 168/90 OF THE ACCOUNTING PLAN OF THE INSTITUTIONS OF THE NATIONAL FINANCIAL SYSTEM - COSIF.

ART. 2. ON ANY DEFICIENCIES PRESENTED IN THE BALANCE OF ACCOUNT 6110.01.10-6 - DEP. M.P.168 - BANKING RESERVES - IN CASH, UP TO THE LIMIT FIXED IN THE MANNER OF ARTICLE 3 OF THIS CIRCULAR, THE CENTRAL BANK WILL CHARGE FINANCIAL COSTS, THESE COSTS DUE AND DEBITED, DAILY, TO THE SAID ACCOUNT.

§ 1. THE FINANCIAL COSTS REFERRED TO IN THE "CAPUT" OF THIS ARTICLE WILL BE FIXED BY THE CENTRAL BANK BASED ON THE REMUNERATION OF ACTIVE OPERATIONS OF THE INSTITUTIONS, AS LISTED IN THE ANNEX TO THIS CIRCULAR, RESPECTING THE CONTENT OF THE SOLE PARAGRAPH OF ARTICLE 17 OF PROVISIONAL MEASURE NO. 168, THESE COSTS NEVER LOWER THAN THE VARIATION OF THE NATIONAL TREASURY BONUS - BTN FISCAL, INCREASED BY INTEREST OF 6% (SIX PER CENT) PER ANNUM, OBSERVED THAT:

I - ACTIVE OPERATIONS WILL BE CONSIDERED, FOR THE PURPOSE OF THIS CIRCULAR, ACCORDING TO THE HOMOGENEOUS GROUPING OF ACCOUNTS;

II - FOR EACH GROUPING, THE INSTITUTION WILL REPORT THE REMUNERATION OF ITS ASSETS, INDICATING THE OPERATIONS SEPARATELY, BASED ON THE CONTRACTED INDEXERS.

ART. 3. THE MAXIMUM LIMIT OF DEFICIENCIES ADMITTED, PER INSTITUTION, WILL BE THE SMALLER OF THE FOLLOWING VALUES:

I - AMOUNT OF THIRD-PARTY RESOURCES, IN NEW CRUZADOS, TRANSFERRED TO THE CENTRAL BANK, NET OF OWN FINANCIAL ASSETS AT THE ORDER OF THIS AGENCY AND DISREGARDING TRANSFERS OF OWNERSHIP ACCEPTED IN FAVOR OF OR AGAINST THE INSTITUTION; OR,

II - VALUE, IF POSITIVE, RESULTING FROM THE APPLICATION OF THE FORMULA:

L = A - ( P + CGP ), WHERE:

L = LIMIT;

A = SUM OF ACTIVE OPERATIONS, IN NEW CRUZADOS, AS LISTED IN THE ANNEX TO THIS CIRCULAR, NOT COMPUTING THE FOLLOWING CREDIT AND LEASING OPERATIONS:

A) OVERDUE AND STILL REGISTERED IN THE SOURCE ACCOUNTS;

B) WHOSE ORIGINAL TERM HAS BEEN EXTENDED AFTER 15.03.90;

C) IN THE CASE OF ITEMS 1.6.1.20.00-8 - LOANS AND 1.6.1.30.00-5 - DISCOUNTED TITLES, EXCEPTIONALLY, THE INCLUSION IN THE COMPUTATION OF THE VALUE OF "A" OF OPERATIONS NOT SETTLED AT THEIR RESPECTIVE MATURITIES WILL BE ADMITTED, UP TO THE FOLLOWING LIMITS:

I - 100% (ONE HUNDRED PER CENT) OF THE VALUE OF THE OPERATION, BETWEEN THE MATURITY DATE AND THE DATE OF EFFECTIVE PAYMENT, PROVIDED THAT THIS HAS OCCURRED UP TO THE DATE OF THIS CIRCULAR;

II - 60% (SIXTY PER CENT) OF THE VALUE OF THE OPERATION, UP TO THE 30TH (THIRTIETH) DAY AFTER ITS MATURITY, INCLUSIVE;

III - 30% (THIRTY PER CENT) OF THE VALUE OF THE OPERATION, BETWEEN THE 31ST (THIRTY-FIRST) DAY AND THE 60TH (SIXTIETH) DAY AFTER ITS MATURITY;

P = SUM OF PASSIVE OPERATIONS, IN NEW CRUZADOS, AS LISTED IN THE ANNEX TO THIS CIRCULAR;

CGP = OWN WORKING CAPITAL, DEFINED AS BEING THE DIFFERENCE BETWEEN ADJUSTED NET EQUITY, ACCORDING TO RESOLUTION NO. 1.555, OF 22.12.88, AND PERMANENT ASSETS, OBEYING THE OPERATIONAL LIMITS PROVIDED IN THE CURRENT REGULATION, IN SUCH A WAY THAT CGP WILL ONLY BE CONSIDERED WITH POSITIVE VALUE.

ART. 4. OPERATIONS AND APPLICATIONS CARRIED OUT IN DISAGREEMENT WITH CURRENT REGULATION OR WHICH EXCEED THE OPERATIONAL LIMITS FIXED BY CURRENT REGULATION WILL NOT BE CONSIDERED, FOR THE PURPOSE OF CALCULATING THE MAXIMUM LIMIT OF DEFICIENCIES REFERRED TO IN THIS CIRCULAR.

SOLE PARAGRAPH. THE VALUES OF THE OPERATIONS MENTIONED IN THE "CAPUT" OF THIS ARTICLE, EVENTUALLY COMPUTED IN THE CALCULATION BASE OF THE LIMIT REFERRED TO IN ARTICLE 3 OF THIS CIRCULAR, WILL BE DEPOSITED WITH THIS AGENCY, IN CRUZEIROS, WITHOUT PREJUDICE OF THE SANCTIONS AND PENALTIES APPLICABLE TO EACH CASE.

ART. 5. THE MONTHLY FIXING OF THE MAXIMUM LIMIT OF DEFICIENCIES ADMITTED WILL BE CARRIED OUT FROM A STATEMENT TO BE PUBLISHED BY THE BANKING OPERATIONS DEPARTMENT - DEBAN, OBSERVING THE FOLLOWING CONDITIONS:

I - FOR THE PERIOD OF 19.03 TO 15.05.90, THE STATEMENT MUST BE FILLED OUT BASED ON POSITIONS REGISTERED IN THE BALANCE SHEET OF 31.03.90 AND DELIVERED TO THE CENTRAL BANK BY THE DAY 20.04.90;

II - FOR THE PERIOD OF 16.05 TO 15.06.90, THE STATEMENT MUST BE FILLED OUT BASED ON POSITIONS REGISTERED IN THE BALANCE SHEET OF 30.04.90 AND DELIVERED TO THE CENTRAL BANK BY THE DAY 15.05.90, AND, SO SUCCESSIVELY, IN THE SUBSEQUENT MONTHS.

ART. 6. IN THE EVENT THAT THE INSTITUTION PRESENTS DEFICIENCIES IN AN AMOUNT GREATER THAN THE MAXIMUM LIMIT DEFINED IN ARTICLE 3 OF THIS CIRCULAR, THE IMMEDIATE COVERAGE OF THE ASSESSED DIFFERENCE WILL BE CARRIED OUT VIA DEBIT TO ACCOUNT 6115.10.10-9 - BANKING RESERVES - IN CASH.

ART. 7. THE NEGOTIATION, WHETHER IN NEW CRUZADOS OR CRUZEIROS, OF CREDIT RIGHTS OF ANY KIND, INCLUDING FIXED INCOME TITLES, EXPRESSED IN NEW CRUZADOS, IS PROHIBITED.

§ 1. THE CREDIT RIGHTS REFERRED TO IN THIS ARTICLE, EVENTUALLY ACQUIRED FROM 15.03.90, WILL NOT BE COMPUTED FOR THE PURPOSE OF CALCULATING THE LIMIT REFERRED TO IN ARTICLE 3 OF THIS CIRCULAR.

§ 2. THE PROVISIONS OF THIS ARTICLE DO NOT APPLY TO THE CASES PROVIDED FOR IN CIRCULARS NOS. 1.614 AND 1.619, OF 22 AND 23.03.90, RESPECTIVELY, AND THE TREASURY FINANCIAL LETTERS - LFT, ACQUIRED IN THE MANNER OF THE MENTIONED CIRCULAR NO. 1.619, MAY BE USED FOR THE PURPOSE OF DEPOSITING NEW CRUZADOS TO THIS AGENCY.

ART. 8. VALUES AT THE ORDER OF THE CENTRAL BANK, ORIGINATING FROM TRANSFERS OF OWN FINANCIAL ASSETS OF THE INSTITUTION, MUST BE USED IN THE DEPOSIT TO THIS AGENCY OF RESOURCES, IN NEW CRUZADOS, FROM ITS CLIENTS.

§ 1. IF THERE IS A REMAINING BALANCE OF VALUES AT THE ORDER OF THE CENTRAL BANK, IN THE NAME OF THE INSTITUTION, THIS WILL BE CONSIDERED FINANCED BY THE LIABILITY, IN NEW CRUZADOS OR, IN ITS ABSENCE, BY ADJUSTED NET EQUITY AS DEFINED IN RESOLUTION NO. 1.555, OF 22.12.88.

§ 2. IF A BALANCE REMAINS AT THE ORDER OF THE CENTRAL BANK, IN THE NAME OF THE INSTITUTION, NOT FINANCED IN NEW CRUZADOS, THIS WILL BE CONSIDERED FINANCED BY THE LIABILITY IN CRUZEIROS.

ART. 9. INSTITUTIONS NOT HOLDING ACCOUNT 6110.10.10-6 - DEP. M.P.168/90 - BANKING RESERVES - IN CASH AT THE CENTRAL BANK ARE SUBJECT TO THE NORMS ESTABLISHED IN THIS CIRCULAR, OBSERVING, FURTHERMORE, THE PROVISIONS OF ARTICLES 10 TO 12 FOLLOWS.

ART. 10. THE RELATIONSHIP WITH THE CENTRAL BANK ARISING FROM THE SCHEME REFERRED TO IN CIRCULAR NO. 1.651, OF 04.04.90, MAY ONLY BE PROCESSED THROUGH A SINGLE INSTITUTION HOLDING THE SAID ACCOUNT 6110.01.10-6 - DEP. M.P.168/90 - BANKING RESERVES - IN CASH AT THE CENTRAL BANK.

ART. 11. THE FINANCIAL INSTITUTION HOLDING ACCOUNT 6110.01.10-6 - DEP. M.P.168/90 - BANKING RESERVES - IN CASH WILL REPORT TO THE CENTRAL BANK, VIA THE CENTRAL BANK INFORMATION SYSTEM - SISBACEN, THROUGH A TRANSACTION TO BE PUBLISHED OPPORTUNELY, THE INDIVIDUALIZED POSITION OF ITS AFFILIATED INSTITUTIONS REGISTERED IN ACCOUNT 4.9.7.97.00-6 - OTHER INSTITUTIONS OF THE SFN - DEPOSITS OF MP NO. 168/90 AT THE CENTRAL BANK, IN ORDER TO DETERMINE THE EQUIVALENCE REFERRED TO IN ARTICLE 1 OF THIS CIRCULAR.

ART. 12. IN THE EVENTUALITY OF THE CASE PROVIDED FOR IN ARTICLE 6 OF THIS CIRCULAR OCCURRING, COVERAGE WILL BE CARRIED OUT VIA DEBIT TO ACCOUNT 6115.10.10-9 - BANKING RESERVES - IN CASH OF THE AFFILIATED INSTITUTION, WITH THE AFFILIATED INSTITUTION RESPONSIBLE FOR PROVIDING IMMEDIATE COVERAGE OF THE DEFICIENCY, IN CRUZEIROS.

ART. 13. THE BANKING OPERATIONS DEPARTMENT - DEBAN WILL ADOPT THE MEASURES AND PROVISIONS NECESSARY FOR THE COMPLIANCE WITH THE PROVISIONS OF THIS CIRCULAR, INCLUDING WITH REGARD TO THE RELATIONSHIP BETWEEN INSTITUTIONS FOR THE USE OF "BANKING RESERVES" ACCOUNTS.

ART. 14. THIS CIRCULAR WILL ENTER INTO FORCE ON THE DATE OF ITS PUBLICATION, PRODUCING ITS EFFECTS FROM 15.03.90.

BRASÍLIA (DF), APRIL 11, 1990.

LUIS EDUARDO ALVES DE ASSIS GUSTAVO JORGE LABOISSIÈRE LOYOLA DIRECTOR DIRECTOR

ANNEX TO CIRCULAR NO. 1.663, OF 11.04.90

A - ACTIVE OPERATIONS IN NEW CRUZADOS REFERRED TO IN ART. 3:

1.2.2.10.00-8 INTERFINANCIAL DEPOSIT APPLICATIONS 1.3.1.10.00-4 FIXED INCOME TITLES 1.3.4.10.00-3 CENTRAL BANK - DEPOSITS FOR CAPITAL IN TITLES 1.3.4.20.00-0 CENTRAL BANK - MANDATORY RESERVES IN TITLES 1.3.4.30.00-7 CENTRAL BANK - TITLES LINKED TO FINANCIAL ASSISTANCE 1.3.4.40.00-4 CENTRAL BANK - TITLES LINKED TO EXTERNAL RESOURCES 1.4.2.25.00-8 NATIONAL TREASURY - DEPOSIT OF RESOURCES FROM RURAL CREDIT 1.4.2.45.00-2 SFH - BONUS - FINAL PURCHASERS - DL 2.164/84 1.4.2.55.00-9 SFH - DEPOSITS AT FAHBRE 1.4.2.60.00-1 SFH - FGTS TO BE REIMBURSED 1.4.2.65.00-6 SFH - SALARY VARIATION COMPENSATION FUND 1.4.2.70.00-8 SFH - TRANSFER OF SAVINGS DEPOSITS 1.4.3.10.00-9 DEBTORS BY REPASSES OF RURAL CREDIT RESOURCES 1.4.3.20.00-6 DEBTORS BY REPASSES OF EXTERNAL RESOURCES 1.4.3.60.00-4 DEBTORS BY REPASSES TO FINANCIAL AGENTS 1.4.3.90.00-5 DEBTORS BY REPASSES OF OTHER RESOURCES 1.6.1.20.00-8 LOANS 1.6.1.30.00-5 DISCOUNTED TITLES 1.6.2.10.00-4 FINANCING 1.6.2.15.00-9 FINANCING TO FINANCIAL AGENTS 1.6.2.20.00-1 FINANCING FOR EXPORTS 1.6.2.30.00-8 FINANCING WITH INTERVENTION 1.6.2.50.00-2 REFINANCING OF LEASING OPERATIONS 1.6.3.10.00-7 RURAL FINANCING - FREE APPLICATIONS 1.6.3.20.00-4 RURAL FINANCING - MANDATORY APPLICATIONS 1.6.3.30.00-1 RURAL FINANCING - REPASSED AND REFINANCED APPLICATIONS 1.6.3.40.00-8 AGROINDUSTRIAL FINANCING 1.6.4.10.00-0 FINANCING OF REAL ESTATE DEVELOPMENTS 1.6.4.30.00-4 HOUSING FINANCING 1.6.4.35.00-9 FINANCING WITHOUT COOBRIGAÇÃO COVERAGE - DECREE 97.222/88 1.6.4.40.00-1 MORTGAGE FINANCING 1.6.4.60.00-5 INCOME FROM REAL ESTATE FINANCING TO BE INCORPORATED 1.6.5.10.00-3 RIGHTS FROM SHARE LOANS 1.6.5.20.00-0 FINANCING OF MARGIN ACCOUNT 1.6.5.30.00-7 FINANCING OF PROCAP 1.6.6.10.00-6 FINANCING OF INFRASTRUCTURE AND DEVELOPMENT 1.6.6.60.00-1 INCOME FROM INFRASTRUCTURE AND DEVELOPMENT FINANCING TO BE INCORPORATED 1.6.7.20.00-6 ACQUIRED CREDIT RIGHTS - WITHOUT COOBRIGAÇÃO 1.6.7.35.20-4 WITHOUT COOBRIGAÇÃO - HOUSING 1.6.7.60.20-0 WITHOUT COOBRIGAÇÃO - HOUSING 1.7.1.10.00-0 LEASES TO BE RECEIVED - INTERNAL RESOURCES 1.7.1.20.00-7 LEASES TO BE RECEIVED - EXTERNAL RESOURCES 1.7.1.60.00-5 ADVANCES TO SUPPLIERS BY ACCOUNT OF LESSEES 1.7.3.10.00-6 SUBLEASES TO BE RECEIVED 1.7.3.60.00-1 ADVANCES TO SUPPLIERS BY ACCOUNT OF SUBLESSEES 1.7.5.10.00-2 RESIDUAL VALUES TO BE REALIZED 1.8.8.10.00-0 ADVANCES BY ACCOUNT OF FIXED ASSETS 1.8.8.35.00-9 DEBTORS BY PURCHASE OF VALUES AND GOODS 1.8.8.40.00-1 DEBTORS BY DEPOSITS IN GUARANTEE 1.8.8.80.00-9 TITLES AND CREDITS TO BE RECEIVED 1.8.8.90.00-6 DIVERSE DEBTORS - EXTERIOR 1.8.8.92.00-4 DIVERSE DEBTORS - COUNTRY

B - PASSIVE OPERATIONS IN NEW CRUZADOS REFERRED TO IN ART. 3:

4.1.2.10.00-0 FREE SAVINGS DEPOSITS - INDIVIDUALS 4.1.2.20.00-7 FREE SAVINGS DEPOSITS - LEGAL ENTITIES 4.1.2.30.00-4 SAVINGS DEPOSITS PECULIUM 4.1.2.40.00-1 PROGRAMMED SAVINGS DEPOSITS 4.1.2.50.00-8 SAVINGS DEPOSITS - MULTIPLE VALUES 4.1.2.60.00-5 LINKED SAVINGS DEPOSITS 4.1.2.80.00-9 SPECIAL SAVINGS DEPOSITS 4.1.2.90.00-6 EXPENSES OF SAVINGS DEPOSITS TO BE INCORPORATED 4.1.3.10.00-3 INTERFINANCIAL DEPOSITS 4.1.4.10.00-6 ADVANCE NOTICE DEPOSITS 4.1.5.10.00-9 TIME DEPOSITS 4.1.5.50.00-7 JUDICIAL DEPOSITS WITH REMUNERATION 4.1.7.10.00-5 APE - SPECIAL DEPOSITS 4.3.1.10.00-5 OBLIGATIONS BY ACCEPTANCES OF NEGOTIABLE INSTRUMENTS 4.3.1.30.00-9 (-) LETTERS OF EXCHANGE IN PORTFOLIO 4.3.2.10.00-8 OBLIGATIONS BY ISSUANCE OF REAL ESTATE LETTERS 4.3.2.30.00-2 (-) REAL ESTATE LETTERS IN PORTFOLIO 4.3.3.15.00-6 OBLIGATIONS BY ISSUANCE OF MORTGAGE LETTERS 4.3.3.30.00-5 (-) MORTGAGE LETTERS IN PORTFOLIO 4.3.4.10.00-4 OBLIGATIONS BY ISSUANCE OF BONDs 4.3.4.30.00-8 (-) BONDs ISSUED IN PORTFOLIO 4.6.2.10.00-5 OBLIGATIONS BY LOANS IN THE COUNTRY 4.6.2.30.00-9 REFINANCING OF LEASING OPERATIONS 4.6.3.10.00-8 OBLIGATIONS IN FOREIGN CURRENCIES 4.6.3.30.00-2 OBLIGATIONS BY LOANS EXTERIOR 4.6.3.50.00-6 OBLIGATIONS BY SUBLEASES EXTERIOR 4.6.4.10.00-1 OBLIGATIONS BY REPASSES - NATIONAL TREASURY 4.6.4.20.00-8 OBLIGATIONS BY REPASSES - BRAZIL BANK 4.6.4.30.00-5 OBLIGATIONS BY REPASSES - BNDES 4.6.4.40.00-2 OBLIGATIONS BY REPASSES - CEF 4.6.4.50.00-9 OBLIGATIONS BY REPASSES - FINAME 4.6.4.60.00-6 OBLIGATIONS BY REPASSES - FINEP 4.6.4.90.00-7 OBLIGATIONS BY REPASSES - OTHER OFFICIAL INSTITUTIONS 4.6.6.10.00-7 OBLIGATIONS BY REPASSES EXTERIOR 4.9.6.50.00-2 OBLIGATIONS BY FINANCIAL AND DEVELOPMENT FUNDS 4.9.9.08.00-8 DEBTORS BY ADVANCEMENT OF RESIDUAL VALUE 4.9.9.20.00-0 OBLIGATIONS BY ACQUISITION OF GOODS AND RIGHTS 4.9.9.23.00-7 OBLIGATIONS BY CONTRIBUTION TO SFH 4.9.9.50.00-1 TIME RESOURCES OF SHAREHOLDERS 4.9.9.90.00-9 DIVERSE DEBTORS - EXTERIOR 4.9.9.92.00-7 DIVERSE DEBTORS - COUNTRY 6.2.1.10.00-0 APE - FREE SAVINGS DEPOSITS - INDIVIDUALS 6.2.1.20.00-7 APE - FREE SAVINGS DEPOSITS - LEGAL ENTITIES 6.2.1.30.00-4 APE - SAVINGS DEPOSITS PECULIUM 6.2.1.40.00-1 APE - PROGRAMMED SAVINGS DEPOSITS 6.2.1.50.00-8 APE - SAVINGS DEPOSITS - MULTIPLE VALUES 6.2.1.60.00-5 APE - LINKED SAVINGS DEPOSITS 6.2.1.80.00-9 APE - SPECIAL SAVINGS DEPOSITS 6.2.1.90.00-6 APE - EXPENSES OF SAVINGS DEPOSITS TO BE INCORPORATED

VALUES TO BE DEDUCTED FROM LIABILITY

1.2.3.10.00-1 VOLUNTARY DEPOSITS AT THE CENTRAL BANK 1.4.2.10.00-6 CENTRAL BANK - DEPOSITS IN FOREIGN CURRENCIES

OBSERVATION: THE VALUES MUST BE REPORTED BY THEIR CURRENT VALUE, EXCLUDING THE RESPECTIVE INCOME/EXPENSES TO BE APPROPRIATED, EXCEPT FOR LEASING OPERATIONS.