Circular No. 1186 - Foreign Currency Deposits - Resolution 1209 of 10/30/86 - Profits, Dividends, Returns and Capital Gains

CIRCULAR NO. 001186

We communicate that the Board of Directors of the Central Bank, considering the provisions of Resolution No. 1,209, of 10/30/86, has resolved to allow the acceptance of foreign currency deposits, with banks authorized to operate in foreign exchange, of:

a) profits and dividends remittable, in accordance with current regulations, distributed to foreign partners or shareholders by companies headquartered in the Country; and

b) resources resulting from the liquidation of investments and the sale of corporate participations, registered with the Central Bank, remittable to the exterior as returns and capital gains.

2. Deposits of this kind must be made by companies receiving foreign capital, discriminating the respective beneficiaries, and will be released, with prior notice of not less than 30 (thirty) days or in the form of a scheme adjusted with this Central Bank - Department of Supervision and Registration of Foreign Capital (FIRCE), for remittance to the exterior or reinvestment in the Country.

3. Interest will be credited quarterly on the deposits in question, based on the three-month LIBOR.

Brasília-DF, June 11, 1987

Carlos Eduardo de Freitas
Director