EXPLANATORY NOTES 1.Operational Context 2. Benefit Plans 3. Presentation of the Financial Statements 4. Relevant Fact
5. Main Accounting Practices 6. Receivables - Pension Program 7. Receivables - Investment Program 8. Fixed Income 9. Variable Income 10. Real Estate Investments 11. Operations with Participants
12. Investments - PREVI Futuro Plan 13. Investments - Annuity Portfolio - CAPEC 14. Operating Liabilities 15. Contingency Liabilities 16. Actuarial Liabilities 17. Mathematical Provisions - Benefit Plan 1 18. Mathematical Provisions - PREVI Futuro 19. Technical Balance 20. Found 21. Income Statement
OPERATIONS WITH PARTICIPANTS
The portfolio of Operations with Participants on the 31st of December of 2006 and 2005 can be demonstrated as follows:
a) Simple Loans
The portfolio had an increase of R$ 100,876 thousand in relation to the previous year. The Provision for Bad Debts of the Simple Loan portfolio represents 0.6% of the sub-group total.
b) Real Estate Financing
In 2006, 13,472 Real Estate Financing contracts were reviewed. Also 766 advanced settlements were accomplished with resources of the borrowers, which represented an income of R$ 34,662 thousand. In these settlements, 44 participants used resources of the FGTS, at the amount of R$ 3,251 thousand.
The Provision for Bad Debts of the Real Estate Financing portfolio reached R$ 970,956 thousand (R$ 920,445 thousand in 2005). The default is equivalent to 38.3% of the total amount. Most of the defaulting contracts were executed in 1995 (PDV - Volunteer Dismissal Program of sponsor Banco do Brasil). The values receivable are updated by the contractual rates.