Circular No. 2.878

CIRCULAR N. 002878 ------------------ Amends the minimum term and sets forth the calculation criteria for payment of interest on the Special Series Central Bank of Brazil Notes (NBCE). The Collegiate Board of Directors of the Central Bank of Brazil, in a session held on 17.03.99, having regard to the provisions of the "caput" of art. 1 of Resolution No. 2.043, of 13 January 1994, and of art. 5 of Resolution No. 2.089, of 30 June 1994, D E C I D E D: Art. 1 Amend item VI of art. 1 of Resolution 2.043/94, which shall henceforth have the following wording: "VI - term: minimum of one month;" Art. 2 The interest rate, of 6% (six percent) per year, on the Special Series Central Bank of Brazil Notes (NBCE) referred to in item IV of art. 1 of Resolution No. 2.043/94, shall be calculated on the updated nominal value, based on the Compound Capitalization Regime, using the following multipliers, for each interest payment calculation period: a) for securities with terms in months: (m/12) Mm = ( 1 + 6/100 ) - 1 where: Mm = interest multiplier for securities with a term defined in months and calculated with 8 decimal places, rounding the 8th mathematically; m = elapsed term, in months, from issuance or from the last interest payment to the payment date in reference, equivalent to whole months; b) for securities with terms in days: Md = ( A x B ) - 1 where: (m/12) A = ( 1 + 6/100) (d/n) (1/12) B = ( 1 + 6/100 ) where: Md = interest multiplier for securities with terms defined in days; A = expression of the multiplier corresponding to the number of periods equivalent to whole months, with 8 decimal places, rounding the 8th mathematically; B = expression of the multiplier corresponding to the number of days exceeding the period equivalent to whole months, with 8 decimal places, rounding the 8th mathematically; m = elapsed term, in months, from issuance or from the last interest payment to the payment date in reference, equivalent to whole months; d = number of days of the security exceeding the period equivalent to whole months; n = number of days counted from the date corresponding to the calendar day of the redemption date of the security, immediately preceding the issuance date, to the first calendar day of the redemption date of the security occurring after issuance. Art. 3 This Circular enters into force on the date of its publication. Brasília, 18 March 1999 Luiz Fernando Figueiredo Director