CIRCULAR NO. 001759

TO

INSTITUTIONS OF THE NATIONAL FINANCIAL SYSTEM

AMENDS THE STATEMENT FOR CALCULATING THE DEFICIENCY LIMIT IN NEW CRUZADOS, AS TREATED IN CIRCULARS NOS. 1663, 1687, 1724 AND 1736 OF 11.04, 20.04, 10.05 AND 24.05.90, RESPECTIVELY, AND OTHER PROVISIONS.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A MEETING HELD ON 13.06.90, TAKING INTO ACCOUNT THE PROVISIONS OF CIRCULARS NOS. 1663, 1687, 1702, 1724 AND 1736, OF 11.04, 20.04, 30.04, 10.05 AND 24.05.90, 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, AND AMENDED BY CIRCULAR NO. 1736, OF 24.05.90, WHICH SHALL NOW BE IN FORCE ACCORDING TO THE MODEL ANNEXED TO THIS CIRCULAR.

ART. 2. IN THE CALCULATION OF LIMIT I TREATED IN ART. 3 OF CIRCULAR NO. 1663, OF 11.04.90, FROM THE POSITION RELATIVE TO THE CALCULATION BASE OF 31.05.90, IT SHALL BE:

I - DEDUCTED THE TOTAL OF CONVERSIONS CARRIED OUT UP TO THE RESPECTIVE BASE DATE, VIA TRANSACTION PRES 800 OF THE CENTRAL BANK INFORMATION SYSTEM - SISBACEN;

II - DEDUCTED THE TOTAL OF PAYMENTS MADE IN NEW CRUZADOS, SINCE 19.03.90, UP TO THE RESPECTIVE BASE DATE, IN THE NAME OF THE INSTITUTION ITSELF, THROUGH OWN TITLE TRANSFER; AND

III - ADDED THE TOTAL OF DEFINITIVE TRANSFERS OF ACCOUNT 6115.10.10-9 - BANK RESERVES - IN CASH TO ACCOUNT 6110.01.10-6 - DEP. MP 168 - BANK RESERVES - IN CASH, CARRIED OUT VOLUNTARILY BY THE INSTITUTION, UP TO THE RESPECTIVE BASE DATE.

ART. 3. THE VALUE OF THE DAILY COST ON DEFICIENCIES IN NEW CRUZADOS, AS TREATED IN ALINAEA "B" OF ART. 1 OF LETTER-CIRCULAR NO. 2.078, OF 30.04.90, RELATIVE TO PERIODS SUBSEQUENT TO 30.04.90, MAY BE REPORTED WITH UP TO 10 (TEN) BUSINESS DAYS OF DELAY.

§ 1. THE VALUES REPORTED WITH UP TO 3 (THREE) BUSINESS DAYS OF DELAY SHALL BE CHARGED TO ACCOUNT 6110.01.10-6 - DEP. MP 168 - BANK RESERVES - IN CASH, APPRECIATED FOR THE DAY TO WHICH THEY REFER;

§ 2. THE VALUES REPORTED WITH A DELAY GREATER THAN 3 (THREE) BUSINESS DAYS AND UP TO 10 (TEN) BUSINESS DAYS SHALL BE UPDATED BY THE REMUNERATION RATE OF FINANCIAL LETTERS OF THE TREASURY - LFT, VERIFIED FROM THE DAY TO WHICH THEY REFER UP TO THE DATE OF REPORTING, AND SHALL BE CHARGED TO ACCOUNT 6110.01.10-6 - DEP. MP 168 - BANK RESERVES - IN CASH ON THE DATE OF REPORTING, WITHOUT APPRECIATION.

ART. 4. THIS CIRCULAR SHALL ENTER INTO FORCE ON THE DATE OF ITS PUBLICATION.

BRASÍLIA (DF), JUNE 15, 1990.

LUIS EDUARDO ALVES DE ASSIS
DIRECTOR

ANNEX TO CIRCULAR NO. 1.759, OF 15.06.90

CADOC CODE:

STATEMENT FOR THE CALCULATION OF THE DEFICIENCY LIMIT IN NEW CRUZADOS (CIRCULAR NO. 1.663)

BASE DATE: VALIDITY PERIOD:

LIMIT I IN NCZ$ 1.00

(ITEM I OF ART. 3 OF CIRCULAR NO. 1.663)

A) BALANCE OF ACCOUNT 4.6.1.85.00-6 - OBLIGATIONS FOR INSUFFICIENCY IN COLLECTION - LAW NO. 8.024/90 ...
LESS:

B) VALUE OF CONVERSIONS, ACCORDING TO ITEM I OF ART. 2 OF CIRCULAR NO. 1.759, OF 15.06.90 ...

C) VALUE OF PAYMENTS MADE THROUGH TITLE TRANSFER, ACCORDING TO ITEM II OF ART. 2 OF CIRCULAR NO. 1.759, OF 15.06.90 ...
PLUS:

D) VALUE OF TRANSFERS, ACCORDING TO ITEM III OF ART. 2 OF CIRCULAR NO. 1.759, OF 15.06.90 ...

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LIMIT 1 (A - B - C + D) ...
(IF NEGATIVE, CONSIDER ZERO)

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LIMIT II

(ITEM II OF ART. 3 OF CIRCULAR NO. 1.663)

A = SUM OF ACTIVE OPERATIONS, IN NEW CRUZADOS, LISTED IN ANNEX III ...

P = SUM OF PASSIVE OPERATIONS, IN NEW CRUZADOS, LISTED IN ANNEX III ...

CGP = WORKING CAPITAL (ADJUSTED EQUITY - PERMANENT ASSETS) ...

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

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MAXIMUM DEFICIENCY LIMIT
(THE LOWEST AMONG LIMITS I AND II CALCULATED ABOVE).

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

LOCAL/DATE/STAMP/SIGNATURES