Circular No. 2525 — Sets Interest Rates for Housing Financings Governed by Law No. 8,692 of July 28, 1993, and Amends Circular No. 2,395 of December 22, 1993

CIRCULAR NO. 002525

Dispenses with the interest rate of housing financings governed by Law No. 8,692 of July 28, 1993, and amends a provision of Circular No. 2,395 of December 22, 1993.

The Board of Directors of the Central Bank of Brazil, having regard to the provisions of Article 25, paragraph 2, of Law No. 8,692 of July 28, 1993, and Article 57 of the Regulation annexed to Resolution No. 1,980 of April 30, 1993,

DECIDED:

Art. 1 Limit, to the percentages below, the effective interest rates applicable to housing financing operations within the Housing Financial System (SFH) carried out with resources originating from savings deposits:

I - 11% p.a. (eleven percent per annum), in the case of financing granted to a borrower with income up to the equivalent of R$950.00 (nine hundred and fifty reais);

II - 12% p.a. (twelve percent per annum), in the case of financing granted to a borrower with income superior to R$950.00 (nine hundred and fifty reais).

Art. 2 Amend Article 1, paragraph 3, item III, of Circular No. 2,395 of December 22, 1993, which shall henceforth read as follows:

"Art. 1 ......

"Paragraph 3 ......

III - unit value not exceeding R$18,500.00 (eighteen thousand and five hundred reais);

......".

Art. 3 This Circular enters into force on the date of its publication.

Art. 4 Circular No. 2,366 of September 23, 1993 is hereby revoked.

Brasília, December 21, 1994

Cláudio Ness Mauch
Director of Norms and Organization of the
Financial System