Circular No. 3129 — Amends criteria for accounting recognition and evaluation of securities and financial derivatives, allowing held-to-maturity securities to be hedged

CIRCULAR N. 003129

Altera critérios para registro e avaliação contábil de títulos e valores mobiliários e instrumentos financeiros derivativos, permitindo que aqueles classificados na categoria títulos mantidos até o vencimento possam ser objeto de hedge para fins de registro e avaliação contábil.

The Collegiate Board of the Central Bank of Brazil, in a session held on June 26, 2002, based on art. 4, item XII, of Law 4.595, of December 31, 1964, by competence delegated by the National Monetary Council, by act of July 19, 1978, and having in view the provisions of art. 22 of Law 6.385, of December 7, 1976, with the alterations introduced by art. 14 of Law 9.447, of March 14, 1997,

DECIDED:

Art. 1. Amend art. 1, paragraph 4, of Circular 3.068, of November 8, 2001, which shall now be in effect with the following wording:

"Art. 1. ...................................................

"Paragraph 4. The financial capacity referred to in paragraph 3 must be proven based on a cash flow projection, disregarding the possibility of selling the securities held to maturity."

......................................................" (NR)

Art. 2. Amend art. 3, paragraph 4, of Circular 3.082, of January 30, 2002, which shall now be in effect with the following wording:

"Art. 3. ...................................................

"Paragraph 4. Securities and financial instruments classified in the category held to maturity, as provided in art. 1 of Circular 3.068, of 2001, may be subject to hedging for the purposes of accounting recognition and evaluation, provided that the derivative financial instrument shall be evaluated in accordance with the criteria established in art. 1, disregarding the appreciation or depreciation resulting from adjustment to market value." (NR)

Art. 3. This circular enters into force on the date of its publication.

Art. 4. Circular 2.278, of February 12, 1993, is hereby revoked, effective June 30, 2002.

Brasília, June 27, 2002

Sérgio Darcy da Silva Alves
Director