WebmailCreditor Brazil - Evaluation Committee - Comace
The formulation of policy guidelines for the recovery of
Brazil's foreign credits and the establishment of parameters for renegotiations
is coordinated by the Foreign Claims Evaluation Committee (COMACE), collegial
body member of the regimental structure of the Ministry of Finance, established
by the Interministerial no. 188 of October 23, 1989 and reorganized by Decree
no. 2297 of August 11th, 1997, according to the Internal Rules
annexed to the Ordinance. 350 of 26 December 1997.
The implementation of the agreements through renegotiation rebates became
possible with the approval of Law 9665/98 authorizing the Executive Power
to grant partial reduction of the debts of foreign governments with Brazil.
Relief programs and debt restructuring
Brazil, has followed the guidelines of the Paris
Club renegotiations and discounting the debts of their debtors.
In this sense, has participated in informal meetings held at the court of
creditors provided that any participant be lender or observer. The concessional
treatments that have been used most : London menu (50%), Naples (50% -67%),
Lyon (80%) and of Cologne (90%).
In cases that applied the menus of London and Naples, debt relief occurred
by reducing the interest rate (Debt Service Reduction Option-DSR). This
form of relief has the same effect as a direct reduction of debt (Debt Reduction
Option - DR), in terms of Net Present Value. Applying the Lyon and Cologne
Menus, Brazil started to provide direct reduction on the amount rescheduled
because the reduction via interest rate for such percentage of forgiveness
would extend the debt profile for too long.
Brazil's participation in the HIPC initiative
Regarding the participation of the Paris Club creditors in the HIPC Initiative, Brazil committed itself to grant rebates to HIPC countries that are their debtors, within the legal possibilities, which has been done since the adoption of Law 9665/98.
Values in regularization
Currently Brazilians loans classified as nonperforming represent an amount of approximately $ 1.5 billion.
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