Circular No. 2511 — Dispenses on the Scope of the Provisions of Article 1 of Resolution No. 2,118 of October 19, 1994, and Circular No. 2,499 of October 20, 1994

CIRCULAR NO. 002511

Dispenses on the scope of the provisions of Article 1 of Resolution No. 2,118 of October 19, 1994, and Circular No. 2,499 of October 20, 1994.

The Board of Directors of the Central Bank of Brazil, in a session held on November 30, 1994, based on the provisions of Article 10, items III and IV, of Law No. 4,595 of December 31, 1964, with the wording given by Articles 19 and 20 of Law No. 7,730 of January 31, 1989, in Articles 66 and 67 of Provisional Measure No. 731 of November 25, 1994, in Resolution No. 1,779 of December 20, 1990, in Resolution No. 1,857 of August 15, 1991, in Article 2 of Resolution No. 1,912 of March 11, 1992, and in Article 3 of Resolution No. 2,118 of October 19, 1994,

D E C I D E D:

Article 1. Establish that, in the case of multiple banks,
commercial banks, investment banks, development banks, savings banks, credit societies, financing and investment companies, real estate credit societies and associations of savings and loans operating with individuals or non-financial legal entities, the provisions of Article 1 of Resolution No. 2,118 of October 19, 1994, and of Circulars No. 2,447, 2,482 and 2,499 of July 13, 1994, September 15, 1994 and October 20, 1994, respectively, apply:

I - to combined operations of acquisition, assignment or loan, or those referred to as "lease" of assets, rights, credits, credit instruments and/or securities, with or without a retrocession clause;

II - to operations of purchase or sale of acquisition rights, with or without a retrocession clause;

III - to the assumption of obligations that enable the raising of resources based on credit instruments, securities and/or other financial assets ("export notes", certificates of merchandise, gold, etc.);

IV - to the acquisition of corporate participation, with subsequent resale;

V - to the acquisition or assignment of credit rights in national or foreign currency, with retro-sale or retrocession emerging from export and/or import transactions, whether the same are carried out in the domestic or external market;

VI - to any and all operations that result, directly or indirectly, in the granting of credit and/or raising of resources of any nature.

Article 2. The operations referred to in the previous article,
according to their active or passive nature, shall be subject to the following compulsory deposit/mandatory reserve rates, levied on the arithmetic mean of their respective balances in the calculation periods mentioned below:

I - in the case of active operations, contracted until December 2, 1994:

a) calculation period from January 2, 1995 to January 6, 1995: 4% (four percent);

b) calculation period from January 9, 1995 to January 13, 1995: 8% (eight percent);

c) calculation period from January 16, 1995 to January 20, 1995: 12% (twelve percent); and

d) from the calculation period of January 23, 1995 to January 27, 1995: 15% (fifteen percent);

II - in the case of passive operations, contracted until December 2, 1994:

a) calculation period from January 2, 1995 to January 6, 1995: 7.5% (seven and a half percent);

b) calculation period from January 9, 1995 to January 13, 1995: 15% (fifteen percent);

c) calculation period from January 16, 1995 to January 20, 1995: 22.5% (twenty-two and a half percent);

d) from the calculation period of January 23, 1995 to January 27, 1995: 30% (thirty percent);

III - 100% (one hundred percent) for operations contracted from December 5, 1994 onwards, observing the following limits of the balances of the respective accounting items, from the calculation period of December 5, 1994 to December 9, 1994:

a) in the case of active operations: 15% (fifteen percent);

b) in the case of passive operations: 30% (thirty percent).

Paragraph 1. In the case of the operations referred to in item III of Article 1, the rates referred to in item II and the limit referred to in item "b" of item III of this article shall correspond to double those indicated and shall be complied with, observing the phasing indicated, from the calculation period of January 5, 1995 to January 11, 1995 for Group A and from January 2, 1995 to January 6, 1995 for Group B and those subject to the provisions of Circular No. 2,476 of September 8, 1994.

Paragraph 2. The operations referred to in item IV of
Article 1 with a retro-sale clause shall be subject to the deposit
from the date of acquisition, clarified that, in the event that the retro-sale occurs in an operation carried out without the clause mentioned, the financial institution must replace the statements referring to the calculation periods from the date of acquisition, including the value corresponding to the acquisition and subjecting itself to a fine in the amount equivalent to R$50.00 (fifty reais), due for each replaced position, and financial cost calculated in accordance with Article 8 of Circular No. 2,499 of October 20, 1994.

Paragraph 3. The compulsory deposit/mandatory reserve must be constituted with the Central Bank of Brazil exclusively in cash and shall not be entitled to any remuneration.

Paragraph 4. The institution must maintain a record in an internal use account of the balances of the operations subject to the compulsory deposit/mandatory reserve referred to.

Article 3. It is characterized as an infringement of the provisions
of the normative acts mentioned in Article 1 the injection of resources, by the institutions referred to therein, their affiliates and controlled companies, into merchant finance companies ("factoring"), sales promoters or any other type of entity not authorized to operate by the Central Bank of Brazil that offers credit, with a view to increasing the operational capacity of the same.

Article 4. The following accounting sub-titles with the UBDIFACTSELMNZ attributes are created in the Accounting Plan of the Institutions of the National Financial System - COSIF:

8.1.1.55.10-1 Linked to Operations Carried Out in the Country; 8.1.1.55.20-4 Linked to Operations Carried Out with the Exterior.

Article 5. From January 1, 1995, credit rights
linked to export contracts ("export notes") may only be negotiated within the financial market, including integrating the portfolios of mutual investment funds and other institutional investors, provided they are registered in a registration system and financial settlement administered by the Central Custody and Financial Settlement of Securities - CETIP or in other registration systems, custody and settlement duly authorized by the Central Bank of Brazil or by the Securities and Exchange Commission.

Article 6. Amend Article 10, paragraph 3, of the
Regulation annexed to Circular No. 2,205 of July 24, 1992, with the wording given by Circular No. 2,265 of January 14, 1993, which shall now be in effect with the following wording:

"Article 10. ...

"Paragraph 3. The assets referred to in items I and II, items 'c' and 'e', must be registered in a registration system and financial settlement administered by the Central Custody and Financial Settlement of Securities - CETIP or in other systems of registration, custody and settlement duly authorized by the Central Bank of Brazil or by the Securities and Exchange Commission."

Article 7. This Circular enters into force on the date of its
publication.

Article 8. The sole paragraph of Article 2 of Circular No. 2,205 of July 24, 1992 is repealed, from February 1, 1995.

Brasília, December 2, 1994

Cláudio Ness Mauch Alkimar Ribeiro Moura Director of Standards and Organization of the Director of Monetary Policy Financial System