Circular No. 1872 — Establishes Accounting Procedures for the Balance Sheet of December 31, 1990; Classifies Securities with Union Guarantee or Repactuation and Creates COSIF Subtitles

CIRCULAR NO. 001872

TO THE
INSTITUTIONS OF THE NATIONAL FINANCIAL SYSTEM

CLARIFIES ACCOUNTING PROCEDURES FOR THE BALANCE SHEET OF 12/31/90. ESTABLISHES THE ACCOUNTING CLASSIFICATION OF SECURITIES WITH UNION GUARANTEE OR REPACTUATION AND CREATES SUBTITLES IN THE COSIF.

WE COMMUNICATE THAT THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A MEETING ON 12/26/90, HAVING REGARD TO THE PROVISIONS OF ARTICLE 4 OF RESOLUTION NO. 1,757, OF 10/29/90, AND BASED ON THE PROVISIONS OF ARTICLE 4, PARAGRAPH XII, OF LAW NO. 4,595, OF 12/31/64, HAS DECIDED:

ART. 1. THE FINANCIAL STATEMENTS AS OF THE BASE DATE OF 12/31/90 SHALL BE PUBLISHED, INCLUDING COMPARATIVE POSITIONS FOR THE SEMESTER AND THE FISCAL YEAR, ACCORDING TO COSIF 1.22.3.8.B.

ART. 2. THE INSTITUTION SHALL DISCLOSE IN THE EXPLANATORY NOTES THE QUANTITY AND AMOUNT OF PRIVATIZATION CERTIFICATES YET TO BE ACQUIRED, RELATIVE TO THE BASE DATE OF 12/31/90, AS WELL AS THE INSTALLMENTS TO BE CONVERTED USING CREDITS HELD AGAINST THE UNION AND THE AGENCIES AND ENTITIES OF THE FEDERAL PUBLIC ADMINISTRATION, IN ACCORDANCE WITH ORDINANCE NO. 550, OF 09/17/90, OF THE MINISTER OF STATE FOR ECONOMY, FINANCE, AND PLANNING.

ART. 3. IN THE PUBLICATION OF THE FINANCIAL STATEMENTS, THE AMOUNT OF DELINQUENT CREDITS AND CREDITS IN LIQUIDATION REFERRED TO IN RESOLUTION NO. 1,748, OF 08/30/90, SHALL BE DISCLOSED, SEGREGATING THOSE RESPONSIBLE BY THE PUBLIC SECTOR AND THOSE BY THE PRIVATE SECTOR.

ART. 4. THE INSTITUTION HOLDING A POSITION IN SIDERBRÁS DEBENTURES SHALL INFORM IN THE EXPLANATORY NOTES THE ALTERNATIVE ADOPTED AMONG THOSE ESTABLISHED IN ARTICLES 1, 2, AND 3 OF RESOLUTION NO. 1,757, OF 10/29/90, DISCLOSING THE INCURRED AND UNAPPROPRIATED CHARGES, AS WELL AS QUANTIFYING THEIR EFFECTS ON THE RESULT.

ART. 5. SECURITIES ISSUED BY COMPANIES UNDER UNION CONTROL, INCLUDING THOSE REFERRED TO IN ARTICLE 4 OF LAW NO. 8,029, OF 04/12/90, WITH UNION GUARANTEE, WHEN SUBJECT TO THE PROVISIONS OF RESOLUTION NO. 1,748, OF 08/30/90, SHALL BE CLASSIFIED AS OTHER CREDITS IN LIQUIDATION.

ART. 6. REPACTUATED SECURITIES WITH NEGOTIABILITY CLAUSES, REFERRED TO IN ARTICLE 3 OF RESOLUTION NO. 1,757, OF 10/29/90, WHEN USED TO BACK REPO OPERATIONS, IN ACCORDANCE WITH RESOLUTION NO. 1,088, OF 01/30/86, MUST BE CONSIDERED AT THEIR NET VALUE, THAT IS, DEDUCTED FROM THEIR UNAPPROPRIATED INCOME.

ART. 7. IT IS CLARIFIED THAT ONLY UPON THEIR ISSUE SHALL PRIVATIZATION CERTIFICATES, ORIGINATING FROM THE CONVERSION OF UNION DEBTS, BE REGISTERED IN THE PRIVATIZATION CERTIFICATES ACCOUNT, CODE 1.3.5.10.00-6.

ART. 8. THE FOLLOWING ACCOUNTING SUBTITLES ARE CREATED IN THE ACCOUNTING PLAN OF THE INSTITUTIONS OF THE NATIONAL FINANCIAL SYSTEM - COSIF:

1.3.1.10.91-8 DEBENTURES - SIDERBRÁS
1.3.1.10.95-6 (-) UNAPPROPRIATED INCOME - RESOLUTION 1.757 1.3.2.10.91-1 DEBENTURES - SIDERBRÁS 4.2.1.10.91-0 DEBENTURES - SIDERBRÁS 4.2.2.20.91-0 DEBENTURES - SIDERBRÁS

ART. 9. EXPENSES RELATED TO THE ADDITIONAL STATE INCOME TAX - AIR SHALL BE RECORDED IN INCOME TAX, CODE 8.9.4.10.00-6.

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

BRASÍLIA (DF), DECEMBER 27, 1990.

GUSTAVO JORGE LABOISSIÈRE LOYOLA
DIRECTOR