Circular No. 600 — Approves Norms Applicable to Foreign Currency Deposits Made Under Resolution CMN No. 678/1981

Circular No. 600 of January 22, 1981

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CIRCULAR NO. 600
We communicate that the Board of the Central Bank has decided to approve the following norms applicable to foreign currency deposits made in accordance with Resolution No. 678, of January 22, 1981.

2. The foreign currency deposits covered by this Circular shall be based exclusively on external loan operations entered into for the purpose foreseen in Article 13 of the Regulation annexed to Resolution No. 351, of November 17, 1975.

3. Such deposits shall be made by leasing companies or by financial institutions authorized to conduct leasing operations with the Regional Division of Foreign Exchange Operations of this Bank in Rio de Janeiro or São Paulo, at the depositor's discretion.

4. The entities referred to in the preceding item, located in other places other than Rio de Janeiro or São Paulo, may, upon prior communication to this Bank, authorize a bank authorized to operate in foreign exchange to, in their name, carry out operations for the establishment and withdrawal of the deposits in question.

5. The deposits shall be made in the currency of the external loan to which they are linked, in accordance with the following item, through foreign exchange purchase from the Central Bank at the prevailing buying exchange rate for the currency.

6. Subject to the provisions of item 16, the deposited amounts shall be linked to a Registration Certificate of external loan issued by this Central Bank. Such linkage shall be made observing the chronological order of issuance of the Certificates granted to the depositing entity, starting with the oldest, until the value corresponding to the debtor balance of the loan related to it is reached, thus resulting in one account for each Registration Certificate.

7. The balance of the deposits in question shall not exceed the sum of the debtor balances of the external loans that served as their basis.

8. The balances presented in the accounts referred to in item 6 shall accrue interest, in favor of the depositors, for the respective deposit terms, at the same rate approved for the external loan operation to which the deposit was linked, in accordance with item 6.

9. The payment of interest on the deposits, referred to in the preceding item, shall be made two (2) business days in advance of the maturity date of the interest installment due according to the scheme provided for the external loan to which the deposit is linked or - if it occurs first - based on the date of total withdrawal of the balance presented in the deposit account linked to a Registration Certificate.

10. The conversion to cruzeiros of the amount due as interest on the deposits shall be based on the selling exchange rate, for the deposit currency, prevailing on the date on which the interest payment is to be made, in accordance with the provisions of the preceding item.

11. Respecting the regime adjusted between the borrower (depositor) and the creditor of the external loan, the Central Bank shall assume the burden of income tax on the interest produced in accordance with item 8, in cases where this burden is the responsibility of the depositor or when, implicitly, it has been agreed that the same shall be added to the interest rate, as provided in the Registration Certificate to which the deposit is linked.

Circular No. 600 of January 22, 1981
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12. The voluntarily deposited amounts, in accordance with this Circular, shall only become available - subject to the provisions of the following item - from the 3rd (third) month counted from the date of the deposit's establishment, and its withdrawal shall be effected through foreign exchange sale of the respective amount in foreign currency by the depositor to the Central Bank, at the prevailing buying exchange rate at that time.

13. The deposit accounts in question may be operated - whether by establishment or withdrawal - only once each month, on a fixed day for all months, to be indicated to this Central Bank by the depositor.

14. The provisions of the preceding item are excepted:
    b) the establishment and withdrawal of deposits made based on the provisions of Resolution No. 595, of January 16, 1980, and complementary norms; and c) the withdrawal for simultaneous remittance abroad in payment of an installment related to the external loan to which the deposit is linked.

15. The operations referred to in item 13 shall be for amounts not less than the equivalent of US$20,000.00 (twenty thousand United States dollars), operations of lesser value being admitted only when resulting from the need to adjust the deposits to the norms governing the matter.

16. Deposits established simultaneously with the inflow of resources, as well as those, regarding the operations in question, made in accordance with item 5 of Circular No. 503, of February 13, 1980, with the new wording given to it in this Circular, shall be linked to the external loans that gave rise to them, until their withdrawal occurs.

17. Item 5 of Circular No. 503/80 is hereby amended to read as follows:
    "5. In operations under the auspices of Resolutions Nos. 63 and 351, depositing entities may opt to make a deposit under the regime of Resolution No. 595, for the portion of 25% (twenty-five percent) of the inflow of the external loan not subject to the collection provided in the latter normative. Equal treatment may be granted to the second and third installments of 25% (twenty-five percent), upon the expiration of their unavailability."

18. The balances currently existing in deposit under the norms of GECAM Communication No. 322, of July 26, 1976, shall be transferred to the system covered by this Circular upon request of the respective depositors.

Brasília-DF, January 22, 1981
José Carlos Madeira Serrano
Director
This text does not replace that published in the DOU and Sisbacen.