Circular No. 1701 — Economic Stabilization Plan Law No. 8,024 of 12.04.90 Operational Norms Applicable to the Special Settlement and Custody System - SELIC

CIRCULAR N. 001701

PLANO DE ESTABILIZAÇÃO ECONÔMICA
LEI Nº 8.024, DE 12.04.90 - NORMAS OPERACIONAIS APLICÁVEIS AO SISTEMA ESPECIAL DE LIQUIDAÇÃO E DE CUSTÓDIA - SELIC.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A SESSION HELD ON THIS DATE, HAVING REGARD TO THE PROVISIONS OF ARTICLE 20 OF LAW NO. 8,024, OF 12.04.90, HAS DECIDED:

ART. 1. THE TREASURY FINANCIAL NOTES (LFT) DENOMINATED IN NEW CRUZADOS THAT, AT THE CLOSE OF THE SELIC MOVEMENT RELATING TO THE DAY 19.3.90, HAD REMAINED UNAVAILABLE IN CUSTODY, SUB-CUSTODY, AND CLIENT ACCOUNTS, IN THE MANNER OF ARTICLE 5 OF CIRCULAR NO. 1642, OF 30.3.90, MAY BE SUBJECT TO NEGOTIATIONS AIMED AT THE MONTAGE BY FINANCIAL INSTITUTIONS OF THE FOLLOWING COMMITTED OPERATION:

I - THE CENTRAL BANK WILL PURCHASE AT PREVIOUSLY ESTABLISHED PRICES, WITH A DATE OF 19.3.90, THE LFTS REFERRED TO IN THE "CAPUT" OF THIS ARTICLE, UP TO A LIMIT OF 30% (THIRTY PERCENT) OF THE CUSTODY POSITION OF EACH INSTITUTION, INCLUDING THOSE ALREADY CONTEMPLATED BY THE OPERATIONS PROVIDED FOR IN CIRCULARS NOS. 1662 AND 1683, OF 10 AND 19.04.90, RESPECTIVELY, FOR RESALE ON THE MATURITY DATE OF THE TITLE;

II - IN THE SELECTION OF PROPOSALS, THOSE REFERRED TO LFTS WHOSE MATURITIES HAVE NOT BEEN CONTEMPLATED BY THE OPERATIONS PROVIDED FOR IN THE CIRCULARS CITED IN THE PREVIOUS INCISO WILL BE PRIORITARILY ACCEPTED;

III - THE RESALE PRICE WILL BE DEFINED ACCORDING TO THE FORMULA BELOW:

PU VOLTA = PU IDA X ILFT X ------
N/365
IBTNF X (1,06)

WHERE:

ILFT : ACCUMULATED INDEX OF LFT REFERENCE RATES IN THE PERIOD; IBTNF : INDEX OF VARIATION OF THE FISCAL TREASURY NOTE IN THE PERIOD; AND N : NUMBER OF CALENDAR DAYS BETWEEN THE START OF THE OPERATION AND THE MATURITY DATE OF THE TITLE.

ART. 2. THE OPEN MARKET OPERATIONS DEPARTMENT - DEMAB WILL ISSUE THE COMPLEMENTARY INSTRUCTIONS NECESSARY FOR THE EXECUTION OF THE PROVISIONS OF THIS CIRCULAR.

ART. 3. THIS CIRCULAR WILL ENTER INTO FORCE ON THE DATE OF ITS PUBLICATION.

BRASÍLIA (DF), APRIL 30, 1990.

LUIS EDUARDO ALVES DE ASSIS GUSTAVO JORGE LABOISSIÈRE LOYOLA DIRECTOR DIRECTOR