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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: Telemarker who wrote (15253)	5/12/1999 8:31:00 PM
From: wl9839	Read Replies (1) \| Respond to of 22640

Brazil Senate OKs Bill Paving Way For New Fincl Regulations Dow Jones Newswires BRASILIA -- Brazil's Senate on Wednesday overwhelmingly approved, in a first round vote, a bill paving the way for the introduction of new rules to regulate the country's financial system, including specific legislation for the central bank. The proposal was passed 67-2, with one abstention. The bill, originally proposed in 1989 by current Health Minister Jose Serra, when he was serving as federal Senator, removes a 12% limit on annual interest rates. It would also scrap a constitutional article that outlaws piecemeal financial regulation. Under the current law, only omnibus financial-sector bills may be considered by Congress. Both items have always hampered the introduction of regulations - the first because the 12% constitutional limit doesn't make sense, and the second because lawmakers consider it impossible putting all rules in only one bill. "Suppressing these items, various laws will refer to different angles of the financial system," said government-supporting Senator Lucio Alcantara, at the end of the voting session. "This will allow for creation of specific legislation for the central bank," he said. In recent weeks, oft-stalled proposals to introduce rules for the central bank gained momentum in Congress due to a Senate investigation into alleged banking sector irregularities. No evidence has been found yet. Five sessions must pass before the Senate can take the measure to a second and final vote, which is largely seen as a formality. After that, the amendment would need to go through two votes in the lower House. Separately, a lower-House committee on Wednesday passed a bill introducing three-year terms for central bank officials, as well as a one-year period before they can join the private sector. The bill must go through another committee before being submitted to a first-round vote. Currently, Brazil's president appoints the central bank president, who then appoints his board of directors. Officials can then stay or leave their positions at will. -By Adriana Arai; 55-61 321-1224 or 965-6883; aarai@ap.org