Circular No. 2,720

CIRCULAR No. 002720 ------------------ Provides for the daily submission of information to the Central Bank of Brazil - average application rates and loan portfolio balances (stock values). The Board of Directors of the Central Bank of Brazil, in a meeting held on 21.08.96, having regard to the provisions of art. 37 of Law No. 4,595, of 31.12.64, and art. 3, item IX, of Law No. 4,728, of 14.07.65, D E C I D E D: Art. 1 The multiple banks, commercial banks, investment banks, development banks, savings banks and credit, financing and investment companies must inform daily to the Department of Special Studies and Monitoring of the Financial System (DEASF), of the Central Bank of Brazil, through the Central Bank Information System - SISBACEN, transaction PESP500, the average application rates and the balances of loan portfolios (stock values) observed in the modalities below, with separation by type of operation (pre or post-fixed): I - With legal entities: a) "hot money"; b) discount of duplicates; c) discount of promissory notes; d) working capital; e) overdraft account; f) acquisition of goods; g) "vendor"; h) advances on exchange contracts; i) "export notes"; j) transfers of external loans (Resolution No. 63, of 21.08.67); k) others. II - With individuals: a) overdraft; b) personal credit; c) acquisition of goods; d) others. Art. 2 In the submission of information related to average application rates, the following criteria must be observed: I - their composition must take into account, in addition to the agreed interest, all and any charges collected from the borrower; II - for each modality and type, the value referring to the weighted average, by the respective loaned volumes, of the effective daily rates of all operations carried out on the base date, without exceptions or cuts of any nature, must be informed; III - in the calculation of averages related to duplicate discount and promissory note operations, each title must be considered individually (no "average" processes should be used in a batch of titles); IV - in post-fixed operations, the rates to be informed must include only the interest and charges collected, disregarding the update references used. Paragraph 1 In post-fixed operations in which various references may be used, such as the Referential Rate (TR), the Basic Financial Rate (TBF) or others, only those carried out based on the TR must compose the calculation of the average rate to be informed to the Central Bank of Brazil. In this case, on the day when no post-fixed operation based on the TR has been carried out, in a given modality, a zero rate must be informed, even if operations based on other references have been carried out. The balance of the respective loan portfolio (stock value) must always be informed, whether or not there has been movement. Paragraph 2 In operations related to Resolution No. 63/67, advances on exchange contracts and "export notes" - which are carried out based on post-fixed rates -, when there is
a forecast of fluctuation of the basic rate, the basic rate in effect on the day of execution must be considered valid for the entire contracted period. Art. 3 The information related to the balances of loan portfolios (stock values) - which will replace those related to applied volumes, as required by Circular No. 2,347, of 28.07.93 -, must consider the totalization of the values of all operations carried out and not settled up to the base date, in each modality and type. Sole paragraph. On the base date when there is no movement in a given modality and type (neither new loans nor settlements), the portfolio value of the previous day must be repeated and a zero rate informed. Art. 4 Rural credit operations, BNDES transfers and any others backed by compulsory resources or originating from government transfers must not be considered for the purposes of this Circular. Art. 5 Operations eventually carried out on a non-business day must be considered as carried out on the immediately following business day. Art. 6 For the purposes of this Circular, the following must be considered: I - renewals of operations, as new operations; II - "hot money" operations, as those carried out with a maximum term of 29 (twenty-nine) consecutive days and not eligible for classification in the other modalities provided; III - working capital financing operations, as those carried out with a minimum term of 30 (thirty) consecutive days and not eligible for classification in the other modalities provided; IV - "vendor" operations, as those in which an institution finances mercantile sales to the purchaser of the products. Art. 7 Application operations that cannot be classified in the specific modalities provided in this Circular must be grouped in the "others" modalities. Art. 8 The information dealt with in this Circular must be submitted by the 10th (tenth) business day after the date to which they refer, considering as a business day any day that is not a Saturday, Sunday or national holiday. Art. 9 The non-provision, provision with delay and extemporaneous rectification of the information required by this Circular will entail the application of the penalties provided in Resolution No. 2,194, of 31.08.95. For this purpose, the institutions covered by this norm must keep updated with the Department of Registration and Information (DECAD), of this Central Bank of Brazil, the data related to name, CPF and contact telephone of those responsible for the preparation and submission of information, as well as the CGC and the name of the financial institution in whose "bank reserves" account the fines eventually due will be debited. Art. 10. The Department of Special Studies and Monitoring of the Financial System (DEASF) of this Central Bank of Brazil is authorized to request any additional information relating to the subject addressed in this Circular. Art. 11. This Circular enters into force on 01.10.96, when Circular No. 2.347, of 28.07.93, Letter-Circular No. 2.359, of
16.04.93, and Communiqué No. 3.491, of 02.09.93, shall be revoked. Brasília, 06 September 1996. Alkimar Ribeiro Moura Director