Circular No. 1765 — Updates the New Cruzados Deficiency Limit and Alters Procedures for Submitting Relevant Statements and Collecting Costs

CIRCULAR NO. 001765

TO
INSTITUTIONS OF THE NATIONAL FINANCIAL SYSTEM

ESTABLISHES THE UPDATE OF THE LIMIT FOR DEFICIENCY IN NEW CRUZADOS, AS PROVIDED IN CIRCULAR NO. 1,663, OF 11/04/90, AND ALTERS PROCEDURES REGARDING THE SUBMISSION OF RELEVANT STATEMENTS AND THE COLLECTION OF COSTS INCURRED ON SUCH DEFICIENCY.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A MEETING HELD ON 06/25/90, TAKING INTO ACCOUNT THE PROVISIONS OF CIRCULAR NO. 1,663, OF 11/04/90, HAS DECIDED:

ART. 1. THE LIMIT OF EACH INSTITUTION, FROM THE POSITION AS OF 07/02/90, CALCULATED IN THE MANNER PRESCRIBED IN ART. 3 OF CIRCULAR NO. 1,663, OF 11/04/90, WITH THE AMENDMENTS INTRODUCED BY ARTS. 1 AND 2 OF CIRCULAR NO. 1,759, OF 06/15/90, WILL BE UPDATED DAILY, THROUGH AN AUTOMATIC ROUTINE, BASED ON THE VARIATION OF THE NATIONAL TREASURY FISCAL BOND (BTNFISCAL) RATE, INCREASED BY 6% (SIX PERCENT) PER ANNUM, AND THE CORRECTED VALUE WILL BE PRESENTED IN QUERIES OBTAINED THROUGH THE TRANSAÇÃO PREN 600 OF THE CENTRAL BANK INFORMATION SYSTEM - SISBACEN.

ART. 2. INSTITUTIONS MUST INFORM THE CENTRAL BANK, ON THE DATES PRESCRIBED FOR THE SUBMISSION OF STATEMENTS FOR THE CALCULATION OF THE LIMIT FOR DEFICIENCY IN NEW CRUZADOS ESTABLISHED BY CIRCULAR NO. 1,724 AND ALTERED BY CIRCULARS NOS. 1,736 AND 1,759, RESPECTIVELY ON 05/10, 05/24, AND 06/15/90, OF ANY CHANGES THAT MAY HAVE OCCURRED IN THE LIMITS REFERRED TO PREVIOUS BASE DATES, SUBMITTING SUBSTITUTE STATEMENTS.

PARAGRAPH 1. CHANGES THAT IMPLY A REDUCTION OF THE LIMITS PREVIOUSLY REPORTED WILL BE PROCESSED IMMEDIATELY, BEING SUBJECT TO LATER VERIFICATION BY THE AUDIT AREA OF THIS AGENCY.

PARAGRAPH 2. CHANGES THAT IMPLY AN INCREASE IN THE LIMITS PREVIOUSLY REPORTED MUST BE OBLIGATORILY ACCOMPANIED BY THE RELEVANT JUSTIFICATIONS AND WILL ONLY BE PROCESSED AFTER HEARING THE AUDIT AREA OF THIS AGENCY.

PARAGRAPH 3. INSTITUTIONS THAT MAINTAIN AFFILIATED ENTITIES, WHENEVER THEY COMMUNICATE A CHANGE IN THEIR OWN LIMIT OR THAT OF THEIR AFFILIATE(S), MUST INFORM THE GLOBAL LIMIT THAT IS INTENDED TO COME INTO FORCE.

ART. 3. THE VALUE OF THE DAILY COST ON DEFICIENCIES IN NEW CRUZADOS, AS PROVIDED IN ALINÉA "B" OF ART. 1 OF LETTER-CIRCULAR NO. 2,078, OF 04/30/90, RELATIVE TO POSITIONS POSTERIOR TO 05/31/90, INFORMED WITH A LAG EXCEEDING 10 (TEN) BUSINESS DAYS, MUST BE UPDATED BY THE VARIATION OF THE TREASURY FINANCIAL LETTER (LFT) REMUNERATION RATE, VERIFIED FROM THE DATE TO WHICH IT REFERS UNTIL THE DATE OF THE INFORMATION, AND WILL BE CHARGED TO ACCOUNT 6110.10.10-6 - DEP. MP 168 - BANKING RESERVES - IN CASH, ON THE DATE OF THE INFORMATION, WITHOUT APPRECIATION, SUBJECTING THE INSTITUTION TO THE SANCTIONS PRESCRIBED IN ART. 4 OF CIRCULAR NO. 1,724, OF 05/10/90.

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

BRASÍLIA (DF), JUNE 26, 1990.

LUIS EDUARDO ALVES DE ASSIS GUSTAVO JORGE LABOISSIÈRE LOYOLA DIRECTOR DIRECTOR