Circular No. 2483 — Redefining Rules Regarding the Collection of Mandatory Reserves on Savings Deposit Funds

CIRCULAR NO. 002483

REDEFINING RULES REGARDING THE COLLECTION OF MANDATORY RESERVES ON SAVINGS DEPOSIT FUNDS.

THE BOARD OF DIRECTORS OF THE CENTRAL BANK OF BRAZIL, IN A SESSION HELD ON 13.09.94, BASED ON THE PROVISIONS OF ART. 3 OF RESOLUTION NO. 2,106, OF 31.08.94,

DECIDED:

ART. 1. AMEND PARAGRAPH 2 OF ART. 1 OF CIRCULAR NO. 2,293, OF 24.03.93, WHICH SHALL ENTER INTO FORCE WITH THE FOLLOWING WORDING:

"PARAGRAPH 2. FOR THE PURPOSE OF THE COLLECTION OF MANDATORY RESERVES ON SAVINGS DEPOSIT FUNDS, THE CALCULATION PERIOD IS DEFINED AS THE BUSINESS DAYS INCLUDED IN THE PERIOD OF ONE WEEK, BEGINNING ON MONDAY AND ENDING ON FRIDAY."

ART. 2. THE PAYABILITY REFERRED TO IN ITEM II OF ART. 6 OF THE REGULATION ANNEXED TO RESOLUTION NO. 1,980, OF 30.04.93, WITH THE WORDING GIVEN BY RESOLUTION NO. 2,106, OF 31.08.94, MUST BE COMPLIED WITH IN THE FOLLOWING MANNER, OBSERVING, WHERE APPLICABLE, THE PROVISIONS OF CIRCULAR NO. 2,293, OF 24.03.93:

I - 20% (TWENTY PERCENT) IN CASH; AND

II - 10% (TEN PERCENT) VIA LINKING, IN THE SPECIAL SETTLEMENT AND CUSTODY SYSTEM (SELIC), OF FEDERAL SECURITIES REGISTERED IN THAT SYSTEM, BELONGING TO THE FINANCIAL INSTITUTION'S OWN PORTFOLIO AND NOT LINKED TO REPURCHASE AGREEMENTS.

PARAGRAPH 1. THE PAYABILITY REFERRED TO IN THIS ARTICLE SHALL CORRESPOND TO THE LOWER OF THE FOLLOWING VALUES:

A) 30% (THIRTY PERCENT) OF THE AVERAGE OF DAILY BALANCES OF SAVINGS DEPOSITS, CALCULATED DURING THE RESPECTIVE CALCULATION PERIOD; OR

B) SUM OF THE FOLLOWING PORTIONS:

• PAYABILITY CALCULATED IN THE CALCULATION PERIOD FROM 22.08 TO 26.08.94; AND

• NET COLLECTION OF SAVINGS DEPOSITS VERIFIED FROM 29.08.94 UNTIL THE LAST DAY OF THE CALCULATION PERIOD CONSIDERED.

PARAGRAPH 2. THE COMPLIANCE WITH THE PAYABILITY OF THE 10% (TEN PERCENT) PORTION VIA THE LINKING OF FEDERAL SECURITIES SHALL ONLY BE EFFECTED AFTER THE 20% (TWENTY PERCENT) PAYMENT IN CASH HAS BEEN COMPLIED WITH.

PARAGRAPH 3. THE VALUES PAID/LINKED SHALL ONLY BE RELEASED AFTER THE PAYABILITY MENTIONED IN THE CAPUT OF THIS ARTICLE HAS BEEN REACHED.

PARAGRAPH 4. THE PROVISIONS OF THIS ARTICLE SHALL BE OBSERVED FROM THE CALCULATION PERIOD BEGINNING ON 12.09.94, WHOSE ADJUSTMENT WILL OCCUR ON 26.09.94.

ART. 3. FOR THE PURPOSE OF THE PROVISIONS OF ITEM II OF ART. 2 OF THIS CIRCULAR, THE LINKED/UNLINKED SECURITIES SHALL BE CONSIDERED BY THE RESPECTIVE UNIT PRICES USED BY THE CENTRAL BANK OF BRAZIL IN ITS REPURCHASE OPERATIONS, DAILY DISCLOSED BY THE OPEN MARKET OPERATIONS DEPARTMENT (DEMAB).

SINGLE PARAGRAPH. THE LINKED SECURITIES MAY BE REPLACED BY OTHERS WHOSE FINANCIAL VALUE, ON THE DATE OF SUBSTITUTION, IS EQUIVALENT TO THAT OF THE SECURITIES ORIGINALLY LINKED.

ART. 4. IN THE EVENT THAT A SHORTFALL IN THE LINKING OF SECURITIES IS FOUND, THE FINANCIAL INSTITUTION INCURS THE PAYMENT OF COSTS INCURRED ON THE VALUE OF THE DEFICIENCY CALCULATED AS PROVIDED IN ART. 4 OF CIRCULAR NO. 2,293, OF 24.03.93, FOR CASES OF SHORTFALL IN THE PAYMENT IN CASH.

SINGLE PARAGRAPH. THE CHARGING OF FINANCIAL COSTS IS EFFECTED THROUGH AN ENTRY IN THE "BANKING RESERVES" ACCOUNT OF THE HOLDER/CONVENTION PARTNER.

ART. 5. THE VALUES PAID TO THE CENTRAL BANK, IN CASH, SHALL BE ENTITLED TO DAILY REMUNERATION BASED ON THE REFERENCE RATE (TR), INCREASED BY THE INTERESTS BELOW, CONSIDERING, FOR THE PURPOSE OF CALCULATING INTERESTS, THE CIVIL YEAR:

A) 3.0% (THREE PERCENT) PER ANNUM, IN THE CASE OF MANDATORY RESERVES BASED ON LINKED SAVINGS DEPOSITS;

B) 6.17% (SIX WHOLE AND SEVENTEEN HUNDREDTHS PERCENT) PER ANNUM, IN THE CASE OF MANDATORY RESERVES BASED ON THE OTHER MODALITIES OF SAVINGS DEPOSITS.

ART. 6. THIS CIRCULAR ENTERS INTO FORCE ON THE DATE OF ITS PUBLICATION.

ART. 7. CIRCULAR NO. 2,475, OF 31.08.94, IS REVOKED, EFFECTIVE FROM 26.09.94.

BRASILIA, SEPTEMBER 15, 1994

ALKIMAR RIBEIRO MOURA CLÁUDIO NESS MAUCH DIRECTOR OF MONETARY POLICY DIRECTOR OF NORMS AND ORGANIZATION OF THE FINANCIAL SYSTEM