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
OPERATING LIABILITIES
The Operating Liabilities group is subdivided into the Social Security, Investments and Administrative Programs, and records the obligations resulting from the PREVI operations, in which the records in the Social Security Program are the highlights.
a) BB x PREVI Contract - Group 67
The Social Security Program include the advanced amortizing contributions established in the contract executed by PREVI and Banco do Brasil on 24/12/1997, as amended on 9/2/1998, in order to finance the retirement benefits of the employees of the Bank effective until 14/4/1967 and that retire after such date.
On 31/12/2006, the values related to the BB x PREVI contract reached the following amounts:
(1) Updated by the INPC plus 6% p.a.
(2) See items 16 and 17 of these Notes (Mathematical Provisions)
b) Parity - Agreement 2006
As explained in item 4 of these Notes - Relevant Fact - in compliance with the Second and Fifth Clauses of the Agreement signed on 2/5/2006, the amount of R$ 5,083,784 thousand (positioned on 30/11/2005) was transferred from the accounting entry Parity Fund - Sponsor BB - Preliminary Order 13th Federal Court to the accounting entry Advanced Amortizing Contributions - Parity - Agreement 2006, and, simultaneously, this entry was debited by the amount of R$ 2,856,529 thousand, pursuant to the Third Clause, in which Banco do Brasil authorized the use of this amount to finance the alterations to the Regulation of Benefit Plan 1. The remaining value of R$ 2,227,255 thousand, updated by the actuarial index since December 2005, climbed to R$ 2,328,404 thousand in May 2006.
After the accounting records resulting from the Agreement and other events related to Group 67, occurred in May 2006, the entry Advanced Amortizing Contributions - Parity - Agreement 2006 presented the following figures between June and December 2006:
"CAPA" - Advanced Patronal Amortizing Contributions.