Brasília – Brazilian banks will be able to raise funds overseas to loan to Brazilian companies operating outside Brazil. The rule will apply even if the financial institution at hand has no bank branch in the country where the funds are raised. The measure, passed at a meeting of the National Monetary Council (CMN) and announced this Wednesday (30th), will enter into force on the date of its publication.
The rule applies to banks with clearance to operate on the foreign exchange market, with minimum reference assets of 5 billion Brazilian reais (US$ 3.7 billion). The Brazilian Development Bank (BNDES) is one of the institutions that meet the criteria set by the CMN’s resolution.
The resolution also allows banks to purchase, on the primary market, bonds issued by Brazilian enterprises, or under their responsibility.
According to the head of the Central Bank of Brazil’s Department of Regulation, Sérgio Odilon dos Anjos, prior to the measure, banks with no branches abroad would shop for funds out of the country, but were only allowed to loan them domestically. Now, they can carry out a simultaneous foreign exchange operation and loan the money overseas.
According to Odilon, the measure aims to facilitate internationalization of Brazilian enterprises by providing favourable credit conditions. “We are creating the conditions for our banks to fund our companies abroad,” he added.
*Translated by Gabriel Pomerancblum
