Reduction of the Actuarial Interest Rate

In an inedited initiative, PREVI reduced the actuarial interest rate from 6% to 5.75%. The rate is one of the premises used in the actuarial calculations. Ever since it adopted the capitalization system, in the 80's, PREVI practiced the actuarial rate of 6%. Therefore, this rate was defined based on scenarios that projected an actual interest rate far above the one currently in effect. The adoption of a lower interest rate is a measure of great prudence, in the sense that the reserves (actuarial commitments) are now calculated with a more modest expectation of yield for the investments in the future. PREVI has already considered the reduced interest rate in the formulation of the actuarial premises at the closing of the 2006 fiscal year.