Circular No. 2.957

CIRCULAR N. 002957 ------------------ Provides for the provision of information relating to credit operations carried out in the financial market. The Board of Directors of the Central Bank of Brazil, in a session held on 28 December 1999, having regard to the provisions of art. 37 of Law No. 4.595, of 31 December 1964, and art. 3, item IX, of Law No. 4.728, of 14 July 1965, D E C I D E D: Art. 1 Establish that multiple banks, commercial banks, investment banks, development banks, credit, financing and investment companies, real estate credit companies, savings and loan associations and the Federal Savings Bank must send to the Central Bank of Brazil/Department of Registration and Information of the Financial System (DECAD) information on the weighted average rates, minimum and maximum rates, the amount released on the base date, the balance of credits granted, their respective levels of arrears and the average terms of the operations specified below, segregated by type of charge agreed: I - with legal entities: a) hot money; b) discount of duplicates; c) discount of promissory notes; d) working capital; e) guaranteed account; f) real estate financing; g) acquisition of goods; h) "vendor"; i) advances on exchange contracts; j) export notes; l) on-lending of foreign loans, based on Resolution No. 63, of 21 August 1967; m) others; II - with individuals: a) overdraft; b) personal credit; c) real estate financing; d) acquisition of goods - motor vehicles; e) acquisition of goods - other goods; f) arising from credit card; g) others. Art. 2 The provision of information referred to in the previous article must be made in accordance with the instructions contained in the attached document, observing the following coding of the Document Catalog - CADOC: Savings and Loan Associations 12.1.0.302-9 Commercial Banks 20.1.0.302-8 Development Banks 22.1.0.031-1 Investment Banks 24.1.0.401-6 Multiple Banks 26.1.0.401-4 Federal Savings Bank 38.0.0.401-6 Credit, Financing and Investment Companies 81.1.0.031-4 Real Estate Credit Companies 83.1.0.302-7 Art. 3 The information referred to in this Circular must be provided daily, from the base date of 31 March 2000, until the fifth business day after the date to which they refer, except those relating to the average, minimum and maximum rates practiced in overdraft operations which must be informed through transaction PESP500 of the Central Bank Information System - SISBACEN, option "Overdraft Rates", until two business days after their granting. Art. 4 The information relating to the levels of arrears of the operations referred to in art. 1 must be updated only on the base date that represents the last business day of the reference month and classified into the following ranges: I - up to 15 days of arrears; II - arrears between 15 and 30 days; III - arrears between 31 and 90 days; IV - arrears over 90 days. Art. 5 Rural credit operations, on-lending from the National Bank for Economic and Social Development (BNDES)
or any others backed by compulsory or governmental funds must not be considered for the purposes of this Circular. Art. 6 The non-provision, provision with delay or untimely rectification of the information required by this Circular will entail the application of the penalties provided for in Resolution No. 2.194, of 31 August 1995. Paragraph 1 For the purpose of applying the penalties provided for in this article, the name, registration in the Individual Taxpayer Registry (CPF) and telephone number of those responsible for preparing and providing the information must be informed to DECAD, and kept permanently updated, as well as, in the case of institutions not holding a "Bank Reserves" account, the name and registration in the National Legal Entity Registry (CNPJ) of the financial institution whose account will be used for debiting any fines due. Paragraph 2 Institutions that have zero balances in all credit modalities listed in art. 1 are exempt from sending the information referred to in this Circular, provided that such condition is formally communicated to DECAD. Paragraph 3 If it again carries out any credit and financing operation that may fall under art. 1 of this Circular, the institution must immediately communicate such situation to DECAD. Paragraph 4 DECAD and the Department of Information Technology (DEINF) of the Central Bank of Brazil will disclose the layout by means of which the information in question must be provided. Art. 7 This Circular enters into force on the date of its publication, producing effects from the base date of 31 March 2000, when Circulars No. 2.720, of 6 September 1996, and 2.937, of 14 October 1999, Circular Letter No. 2.882, of 24 November 1999, and Communiqués No. 5.307, of 24 September 1996, 7.018, of 27 October 1999, and 7.038, of 4 November 1999, will be revoked. Brasília, 30 December 1999 Sérgio Darcy da Silva Alves Director ATTACHED DOCUMENT The information required in this Circular must be sent to the Central Bank of Brazil by using the PSTAW10 application (information exchange), referred to in Circular Letter No. 2.847, of 13 April 1999. All required information must be segregated by type of charge agreed into fixed-rate, floating-rate, variable rates or price indices. The values relating to the weighted average rates must be broken down into interest, tax charges and fees incident on the operation, calculated in terms of effective daily rate, also observing that: I - in calculating the weighted average rate, the effective daily rates must be weighted by the respective volumes, without exceptions or cuts of any nature; II - in the revolving credit modalities (guaranteed account and overdraft), regardless of the collection system adopted, the value of the weighted average shall take into account the effective rates per business day, calculated based on the number of business days existing in the period of each operation; III - in calculating the averages relating to duplicate and promissory note
discount operations, each instrument must be considered individually (no "averaging" processes shall be used on a batch of instruments); IV - in the case of operations with post-fixed charges, only those that provide for the incidence of the Referential Rate - TR shall be reported; V - in the case of operations remunerated based on floating rates, the rate observed on the date of the operation shall be considered valid for the entire contracting period; VI - in the case of operations remunerated based on price indices, only the interest and other charges of the operation shall be reported, without the said indexer. In operations included in the modalities of advances on exchange contracts, export notes and on-lending of foreign loans, based on Resolution No. 63 of 21 August 1967, the value of the interest rate agreed on the date of execution shall be considered valid for the entire contracted period. The tax charges relating to the Provisional Contribution on Movement or Transmission of Values and of Credits and Rights of a Financial Nature (CPMF) shall not be considered in the computation of the average rate. For each modality of credit operation, the minimum and maximum rates reported must correspond to the rates practiced by the institutions, expressed in terms of effective daily rate, excluding tax charges and fees incident on the operation. The balances of credits granted for each modality of operation must correspond to the accounting balances determined in accordance with the regulations in force. In the "other" modalities, the values that cumulatively: I - are recorded in the subgroup breakdowns Loans and Discounted Securities, code 1.6.1.00.00-4, and Financing, code 1.6.2.00.00-7, of the Accounting Plan for Institutions of the National Financial System - COSIF; II - cannot be classified under any of the other modalities provided for in art. 1 of this Circular; III - do not belong to the set of operations mentioned in art. 5 of this Circular. In the case of operations included in the guaranteed account and overdraft modalities, the amount released must correspond to the total of withdrawals made on the base date and not to the credit limits. The average term must be calculated in days, considering the terms of all operations of the same modality, weighted by the respective debit balances, counted from the base date reported to the Central Bank of Brazil.