Circular No. 2588 — Provides for the remuneration of transactions carried out within the financial market contracted based on the Basic Financing Rate - TBF

CIRCULAR N. 002588

Provides for the remuneration of transactions carried out within the financial market contracted based on the Basic Financing Rate - TBF.

The Board of Directors of the Central Bank of Brazil, in a session held on 07.05.95, based on art. 5 of Resolution No. 2,171, of 06.30.95,

D E C I D E D:

Art. 1 To set at 4 (four) months the minimum term of active and passive transactions carried out within the financial market with remuneration contracted based on the Basic Financing Rate - TBF.

Sole Paragraph. The minimum term provided for in this article does not apply to the deposits referred to in Resolution No. 2,172, of 06.30.95.

Art. 2 The remuneration of the transactions referred to in the previous article shall be calculated monthly, on the corresponding base date, using the TBF relating to the base date in the previous month.

Paragraph 1 For the purposes of the provisions of this Circular, the base date, in each month, is considered to be the day corresponding to the maturity date of the transaction.

Paragraph 2 Whenever one or more base dates do not exist at the end of the month:

I - the remuneration of transactions, which should have been calculated on the nonexistent base date(s) using the TBF relating to the base date(s) in the previous month, shall be calculated on the first day of the subsequent month, regardless of whether this is a business day or not;

II - the Central Bank of Brazil shall disclose:

a) the TBF relating to the first day of the subsequent month, for use in calculating the remuneration of transactions whose base date(s) do not exist in the month, which shall be obtained by adjusting the TBF relating to the first day of the subsequent month to the number of business days comprised in the period(s) between the first day of the subsequent month itself and the base date(s) in that same month, in accordance with the following formula:

x/y
TBF = 100 ((1 + TBF / 100) -1) % , where:
a 1

TBF = TBF relating to the first day of the subsequent month; 1

x = number of business days comprised in the period between the first day of the subsequent month and the base date in that same month;

y = number of business days comprised in the period of validity of TBF ; 1

b) the TBF relating to the first day of the subsequent month, for use in calculating the remuneration of transactions whose base date is the first day itself.

Art. 3 In situations of release of funds, issuance of a security or assumption of an obligation on a day not coinciding with the corresponding base date, the first calculation of remuneration shall be made on the first base date occurring after the event, based on the "pro-rata" business day criterion, using the TBF relating to the date of the event.

Art. 4 In situations of amortization or settlement of a security or obligation on a day not coinciding with the corresponding base date, the remuneration shall be calculated based on the "pro-rata" business day criterion, using the TBF relating to the last base date.

Sole Paragraph. In the situations referred to in this article, if the TBF relating to the last base date has not yet been disclosed, the remuneration shall be calculated using the last disclosed TBF.

Art. 5 For the purpose of applying the "pro-rata" business day criterion provided for in arts. 3 and 4, the counting of the number of business days between two dates shall include the first and exclude the last.

Art. 6 For the purpose of calculating the remuneration of securities or obligations for which there is no determination of a base date, the first day shall be considered as such.

Art. 7 In contracting the transactions referred to in art. 1 of this Circular, remuneration at levels higher or lower than the TBF may be provided for, and the rate differential shall be added to or subtracted from the TBF.

Sole Paragraph. The provision of remuneration at levels lower than the TBF does not apply to the deposits referred to in Resolution No. 2,172, of 06.30.95.

Art. 8 It is permitted, in relation to the deposits referred to in Resolution No. 2,172, of 06.30.95, for each remuneration credit period, the renegotiation, between the parties, of the premium eventually contracted.

Art. 9 This Circular enters into force on the date of its publication.

Brasília, July 5, 1995

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