Circular No. 943

CIRCULAR N. 000943 ------------------ We inform that the Board of Directors of the Central Bank of Brazil, using the authority delegated by the National Monetary Council, based on art. 4, item XII of Law n. 4.595, of 31.12.64, decided to issue the following complementary rules for cases of capital increases in cash: a) the funds received from subscribers must be recorded, at the time of their entry, in an appropriate account of Current Liabilities, under a subheading for internal and mandatory use, duly individualized, until the respective process is resolved by the Central Bank; b) said funds may only be monetarily corrected after approval of the increase by the Central Bank, and must be accounted for, retroactively to the date of their respective entries; c) the product of the monetary correction made under the terms of item "b" above must be recorded as a credit to the account MONETARY CORRECTION OF PAID-IN CAPITAL; d) the funds of subscribers will not be counted for the purpose of calculating indebtedness limits. 2. The provisions of this Circular apply to capital increase processes occurring during the current year. 3. Circular n. 810, of 15.08.83, is revoked. Brasília-DF, 4 July 1985 Roberto da Cunha Castello Branco Alberto Sozin Furuguem Director Director