Circular No. 2.960

CIRCULAR N. 002960 ------------------ Provides for the calculation criteria for payment of interest on the Notes of the Central Bank of Brazil - Special Series (NBCE). The Collegiate Board of the Central Bank of Brazil, in a session held on 19 January 2000, based on article 3 of Resolution No. 2.673, of 21 December 1999, D E C I D E D: Art. 1. The interest rate of the Notes of the Central Bank of Brazil - Special Series (NBCE) shall be calculated, respecting the provisions of article 1, item IV, of Resolution No. 2.673, of 21 December 1999, on the updated nominal value, based on the Compound Capitalization Regime, using the following multipliers, for each interest payment: I - for securities with terms in months: (m/12) Mm = (1 + i) - 1 where: Mm = interest multiplier for securities with a term defined in months and calculated with eight decimal places, rounding the eighth mathematically; i = interest rate of 6% p.a. or the one defined by the Central Bank of Brazil, when issuing the NBCE, as a percentage per year; and m = elapsed term, in months, from the issue or from the last interest payment until the date of the payment in reference, equivalent to whole months; II - for securities with terms in days: Md = (A x B) - 1 where: Md = interest multiplier for securities with terms defined in days; (m/12) A = (1 + i) (d/n) (1/12) B = (1 + i) where: A = expression of the multiplier corresponding to the quantity of periods equivalent to whole months, with eight decimal places, rounding the eighth mathematically; B = expression of the multiplier corresponding to the quantity of days that exceed the period equivalent to whole months, with eight decimal places, rounding the eighth mathematically; i = interest rate of 6% p.a. or the one defined by the Central Bank of Brazil, when issuing the NBCE, as a percentage per year; m = elapsed term, in months, from the issue or from the last interest payment until the date of the payment in reference, equivalent to whole months; d = number of days of the security that exceed the period equivalent to whole months; and n = number of days counted from the date corresponding to the calendar day of the redemption date of the security, immediately prior to the issue date, until the first calendar day of the redemption date of the security that occurs after the issue. Art. 2. This Circular enters into force on the date of its publication. Art. 3. Circular No. 2.878, of 18 March 1999, is revoked. Brasília, 19 January 2000 Luiz Fernando Figueiredo Director