Circular No. 1736 — Amendment of the Statement for Calculating the Deficiency Limit in New Cruzados and Other Provisions

CIRCULAR NO. 001736

TO

INSTITUTIONS OF THE NATIONAL FINANCIAL SYSTEM

AMENDS STATEMENT FOR CALCULATING THE DEFICIENCY LIMIT IN NEW CRUZADOS OF WHICH CIRCULARS NOS. 1663, 1687 AND 1724, OF 11.04, 20.04 AND 10.05.90, RESPECTIVELY, AND OTHER PROVISIONS.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A MEETING HELD ON 23.05.90, TAKING INTO ACCOUNT THE PROVISIONS IN CIRCULARS NOS. 1663, 1687, 1702 AND 1724, OF 11.04, 20.04, 30.04 AND 10.05.90, RESPECTIVELY, DECIDED:

ART. 1. AMEND, FROM THE POSITION RELATIVE TO THE CALCULATION BASE OF 31.05.90, THE STATEMENT ANNEX II INSTITUTED BY ART. 1 OF CIRCULAR NO. 1724, OF 10.05.90, WHICH SHALL NOW GO INTO EFFECT ACCORDING TO THE MODEL ANNEXED TO THIS CIRCULAR.

ART. 2. IN THE CALCULATION OF LIMIT I REFERRED TO IN ART. 3 OF CIRCULAR NO. 1663, OF 11.04.90, IT SHALL BE DEDUCTED, FROM THE POSITION RELATIVE TO THE CALCULATION BASE OF 31.05.90, THE TOTAL OF PAYMENTS MADE IN NEW CRUZADOS, SINCE 19.03.90, UP TO THE RESPECTIVE DATE-BASE, IN THE NAME OF THE INSTITUTION ITSELF, VIA OWN TITLE TRANSFER.

ART. 3. EXCLUSIVELY FOR THE PURPOSE OF CALCULATING THE COST REFERRED TO IN ART. 1 OF CIRCULAR NO. 1,702, OF 30.04.90, IN THE CALCULATION OF THE DEFICIENCY (D), THE BALANCE EXISTING IN THE "LINKED" ACCOUNT REFERRED TO IN ART. 7 OF CIRCULAR NO. 1687, OF 20.04.90, SHALL BE TAKEN INTO CONSIDERATION, WHICH WILL BE ADDED TO THE BALANCE OF ACCOUNT 6110.01.10-6

• DEP. MP 168 - BANK RESERVES - IN CASH.

ART. 4. THE INSTITUTION THAT DOES NOT HAVE ACTIVE OPERATIONS IN NEW CRUZADOS, "IN PROCESS", SHALL COVER THE TOTAL OF ITS DEFICIENCY VIA TRANSFER, IN A DEFINITIVE MANNER, FROM ACCOUNT 6115.10.10-9 - BANK RESERVES - IN CASH TO ACCOUNT 6110.01.10-6 - DEP. MP 168 - BANK RESERVES - IN CASH.

PARAGRAPH 1. THE SUM OF THE BALANCE OF THE "LINKED" ACCOUNT REFERRED TO IN ART. 7 OF CIRCULAR NO. 1,687, OF 20.04.90, WITH THE LIMIT OF THE INSTITUTION -- CALCULATED IN THE MANNER PROVIDED IN ART. 3 OF CIRCULAR NO. 1,663, OF 11.04.90, WITH THE MODIFICATIONS INTRODUCED BY ART. 1 OF CIRCULAR NO. 1,724, OF 10.05.90, AND BY ARTS. 1 AND 2 OF THIS CIRCULAR -- MAY NOT EXCEED THE TOTAL VALUE OF ACTIVE OPERATIONS, "IN PROCESS", IN NEW CRUZADOS.

PARAGRAPH 2. IN THE EVENT THAT THE TOTAL DEFICIENCY (ACCOUNT 4.9.7.99.00-4 LESS 6110.01.10-6) IS HIGHER THAN THE TOTAL VALUE OF ACTIVE OPERATIONS IN NEW CRUZADOS, "IN PROCESS", THE DIFFERENCE CALCULATED SHALL BE TRANSFERRED, DIRECTLY AND IN A DEFINITIVE MANNER, FROM ACCOUNT 6115.10.10-9 - BANK RESERVES - IN CASH TO ACCOUNT 6110.01.10-6 - DEP. MP 168 - BANK RESERVES - IN CASH.

ART. 5. ACCOUNT 6110.01.10-6 - DEP. MP 168 - BANK RESERVES - IN CASH, MAY NOT PRESENT, FROM 17.09.90, INCLUSIVE, A DEBIT BALANCE.

SINGLE PARAGRAPH. IN THE EVENT OF A DEBIT BALANCE IN THE ACCOUNT MENTIONED IN THE "CAPUT" OF THIS ARTICLE, FROM THE DATE THEREIN REFERRED, INCLUSIVE, THE CENTRAL BANK SHALL TRANSFER FROM ACCOUNT 6115.10.10-9

• BANK RESERVES - IN CASH, IN A DEFINITIVE MANNER, THE AMOUNT OF
  CRUZEIROS NECESSARY TO COVER THE DEBT IN NEW CRUZADOS.

ART. 6. THE INSTITUTION THAT HAS A LIMIT MAY OPT TO, INSTEAD OF PAYING THE COST FOR THE DEFICIENCY, REQUEST FROM THE CENTRAL BANK, VIA THE CENTRAL BANK INFORMATION SYSTEM - SISBA- CEN, THROUGH TRANSACTION PREN 500, IN "OPTION" WHICH WILL BE AVAILABLE FROM 30.05.90, THAT IT TRANSFER THE CORRESPONDING VALUE:

I - FROM ACCOUNT 6115.10.10-9 - BANK RESERVES - IN CASH TO THE "LINKED" ACCOUNT REFERRED TO IN ART. 7 OF CIRCULAR NO. 1687, OF 20.04.90; OR

II - DEFINITIVELY, FROM ACCOUNT 6115.10.10-9 - BANK RESERVES - IN CASH TO ACCOUNT 6110.01.10-6 - DEP. MP 168

• BANK RESERVES - IN CASH.

ART. 7. INSTITUTIONS HOLDING ACCOUNT 6110.01.10-6 - DEP. MP 168 - BANK RESERVES - IN CASH SHALL INFORM, VIA CENTRAL BANK INFORMATION SYSTEM - SISBACEN, THROUGH TRANSACTION PREN 500, IN "OPTION" WHICH WILL BE AVAILABLE FROM 30.05.90, THE VALUE TO BE TRANSFERRED:

I - FROM ACCOUNT 6115.10.10-9 - BANK RESERVES - IN CASH TO THE "LINKED" ACCOUNT REFERRED TO IN ART. 7 OF CIRCULAR NO. 1,687, OF 20.04.90, ALWAYS WHEN THE ACCOUNT HOLDER ITSELF AND/OR ITS AFFILIATED INSTITUTIONS, INDIVIDUALLY, PRESENT A DEFICIENCY HIGHER THAN THE RESPECTIVE LIMIT;

II - DIRECTLY FROM ACCOUNT 6115.10.10-9 - BANK RESERVES - IN CASH TO ACCOUNT 6110.01.10-6 - DEP. MP 168 - BANK RESERVES - IN CASH ALWAYS WHEN THE ACCOUNT HOLDER ITSELF AND/OR ITS AFFILIATED INSTITUTIONS, INDIVIDUALLY, PRESENT A SITUATION COVERED BY ARTS. 4 AND 5 OF THIS CIRCULAR.

ART. 8. THE PROVISIONS IN ARTICLE 4 OF CIRCULAR NO.
1,702, OF 30.04.90, SHALL BE APPLIED FROM 02.05.90, INCLUSIVE.

SINGLE PARAGRAPH. FOR POSITIONS PRIOR TO 02.05.90, THE COST PROVIDED FOR IN THE REGULATIONS OF DEPOSITS SUBJECT to MANDATORY COLLECTION SHALL PREVAIL.

ART. 9. THE AFFILIATED INSTITUTION (HOLDER OF ACCOUNT 6110.01.10-6 - DEP. MP 168 - BANK RESERVES IN CASH) ONLY ASSUMES RESPONSIBILITY FOR THE EXACT AND TIMELY TRANSMISSION OF THE INFORMATION OF THE AFFILIATED INSTITUTIONS TO THE CENTRAL BANK, NOT ASSUMING ANY RISK FOR POSSIBLE DEFAULTS BY ITS AFFILIATED INSTITUTIONS, PROVIDED THAT IT IS INFORMED TO THE CENTRAL BANK WITHIN A MAXIMUM PERIOD OF 72 (SEVENTY TWO) HOURS.

ART. 10. THIS CIRCULAR SHALL ENTER INTO FORCE ON THE DATE OF ITS PUBLICATION.

ART. 11. ARTICLE 10 OF CIRCULAR NO.
1,724, OF 10.05.90, IS HEREBY REPEALED.

BRASÍLIA (DF), MAY 24, 1990

GUSTAVO JORGE LABOISSIÈRE LOYOLA LUIS EDUARDO ALVES DE ASSIS DIRECTOR DIRECTOR

ANNEX TO CIRCULAR NO. 1,736, OF 24.05.90

CADOC CODE:

STATEMENT FOR CALCULATING THE DEFICIENCY LIMIT IN NEW CRUZ- ADOS (CIRCULAR NO. 1,663)

POSITION:
VALIDITY PERIOD:

LIMIT 1, ACCORDING TO ITEM "I" OF ART. 3:

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BALANCE OF ACCOUNT 4.6.1.85.00-6 - OBLI- GATIONS FOR INSUFFICIENCY IN THE COLLECTION

• M.P. 168/90 NCZ$

LESS:

A - VALUE OF CONVERSIONS, ACCORDING TO FIRST PARAGRAPH OF ARTICLE ONE OF CIRCULAR NO. 1724, OF 10.05.90 NCZ$

B - VALUE OF PAYMENTS MADE
VIA OWN TITLE TRANSFER, ACCORDING
TO ARTICLE TWO OF
CIRCULAR NO. 1,736, OF 24.05.90 NCZ$

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LIMIT 1 ...... NCZ$
(IF NEGATIVE, CONSIDER ZERO)

======

LIMIT 2, ACCORDING TO ITEM "II" OF ART.3:

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A = SUM OF ACTIVE OPERATIONS,
IN NEW CRUZADOS, RELATED
IN ANNEX III: NCZ$

P = SUM OF PASSIVE
OPERATIONS, IN NEW CRUZADOS, RELATED IN ANNEX III: NCZ$

CGP = OWN WORKING CAPITAL (ADJUSTED
NET EQUITY - PERMANENT ASSET) NCZ$

---

LIMIT 2 = A - (P + CGP) ...... NCZ$ (IF NEGATIVE, CONSIDER ZERO)

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MAXIMUM DEFICIENCY LIMIT:
(THE LOWER AMONG LIMITS 1 AND 2
CALCULATED ABOVE) NCZ$

LOCATION/DATE/STAMP/SIGNATURES

OBS.: WHEN ONE OF THE LIMITS IS EQUAL TO ZERO, THE FILLING OUT OF
ANNEX III IS WAIVED.