Telebras (TBH) & Brazil Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Telebras (TBH) & Brazil

TBH 0.750

-14.5%

Dec 5 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: wl9839 who wrote (15289)	5/13/1999 8:49:00 PM
From: wl9839	Read Replies (1) of 22640

Brazil Unveils New Accounting Rules For Bk Intl Debt Issues Dow Jones Newswires BRASILIA -- Brazil's central bank Thursday released new accounting regulations for banks issuing debt abroad in a move aimed at bringing Brazil up to international standards. Banks making public debt offers abroad will have to hold dollar-indexed bonds hedging the operation until the foreign credit is passed on domestically, said Amaro Gomes, sub-head of the central bank's norms department. "We're not forcing banks to hold the (dollar-pegged) bonds until maturity, only until foreign credit reaches its final destination in the domestic market," he added. Institutions meeting the new regulations will be eligible to register the value of dollar-pegged bonds in their books according to the price plus yield curve. The bonds will then match their liabilities corresponding to the public offer. Previously, banks were obliged to register the dollar-pegged bonds at market value if it was lower than the price paid. "Particularly during crisis...institutions had to register the bonds at their market value, which was much lower than the cost of the public offer," Gomes said. "This resulted in imbalance. Liabilities and assets (bonds) for the same operation didn't match." Banks then had to write off the imbalance, which was registered as a provision. The measure is not valid for credit lines granted by foreign banks, only for public offers of new debt. The new measure is also valid for dollar-indexed bonds entailed to past public offers. -By Adriana Arai; 55-61 321-1224 or 965-6883; aarai@ap.org

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next