An Alternative Multiple Contracts Version of the SACRE

  • Clovis de Faro Graduate School of Economics, EPGE-FGV, Rio de Janeiro, Brazil
  • Gerson Lachtermacher Associated Professor UERJ, retired, and Strong Business School researcher
Keywords: amortization systems, multiple contracts amortization system


Taking into consideration that the SACRE (system of increasing amortization in real terms), as originally instituted by Caixa Econômica Federal, is not financially consistent, an exact procedure, denoted as SACRE*, was proposed in de Faro and Lachtermacher (2022). An alternative version (SACRE-F) of this system was proposed by Forger (2010). The present paper submits a multiple contract version of SACRE-F. It is shown that, taking into due account the financial institution cost of capital, it is always better to implement the multiple contracts approach instead of the single contract option. An comparison between the both alternatives are detailed.


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Numerical Differences, when 0% < ρ ≤ 10%