EXTERNAL DEBT

Contact Person

Organization

Phone Number

Fax Number

E-mail

Coverage characteristics

Periodicity

Timeliness

Advance dissemination of release calendar

Simultaneous release to all interested parties

Dissemination of terms and conditions under which official statistics are produced, including those relating to confidentiality of individual responses

The Central Bank guarantees the confidentiality of the data in observance of the established in Article 38 of the Law Nr. 4595.

Based on Law no. 4,131, dated September 03, 1962, all foreign capital entering the country must be registered at Banco Central do Brasil.

The Law Nr. 4595, the National Monetary Council resolutions, and other rules issued by the Central Bank of Brazil, as well as other legislation, can be found in Portuguese on the Central Bank's Internet page:

http://www.bcb.gov.br/?NORMS

These laws are available to the public in Portuguese at the Internet page of the Presidency of the Republic, under search of decrees and laws

http://www.planalto.gov.br

Identification of internal government access to data before release

Identification of ministerial commentary on the occasion of statistical releases

Provision of information about revision and advance notice of major changes in methodology

Dissemination of documentation on methodology and sources used in preparing statistics

Dissemination of component detail, reconcilliations with related data, and statistical frameworks that support statistical cross-checks and provide assurance of reasonableness

There are several external debt publications, all of which are available on the Banco Central do Brasil Website (http://www.bcb.gov.br):

The Press Release on the External Sector publishes the following:·

• Total external debt by debtor;
• International investment position – includes external debt data in the following items:·
  • Liabilities – Portfolio investment – Debt securities – Bonds and notes;·
  • Liabilities – Other investments – Trade credits;·
  • Liabilities – Other investments – Loans – Monetary authority and other sectors.

In Banco Central do Brasil Economic Indicators:·

• Bond issues by the Federative Republic of Brazil

In the Banco Central do Brasil Monthly Bulletin:·

• Total external debt·
• Total external debt by debtor

In the Annual Report:

• Gross foreign indebtedness·
• Issues of the Republic
• Exchange operations of bonds of the Republic·
• Restructured external debt – Bradies – Pre-Bradies·
• IMF financial assistance program·
• External debt targeting
• Exceptional financing

In the Time Series:·

• Diverse economic-financial variables are available on the Banco Central do Brasil Website (http://www.bcb.gov.br), including:
  • Total external debt.
  • Intercompany loans.

Notes

Press Release - Foreign Sector
http://www.bcb.gov.br/?FOREIGNSECTOR

Banco Central do Brasil Bulletin
http://www.bcb.gov.br/?BULLETIN

Concept: The external debt encompasses total contractual debts effectively disbursed and not yet paid, owed by residents of an economy to nonresidents, in which there is an obligation to pay principal and/or interest at some point(s) in the future.

Definitions: The Gross external debt includes debt operations contracted as short, medium and long-term financial loans, import financing, leasing and service financing, with payment terms of more than 360 days, registered in the Banco Central do Brasil Electronic Declaratory System – Financial Operations Registration (RDE-ROF), together with other liabilities originating in the following sources:

• Accounting Plan of Financial Institutions (Cosif) – records the foreign currency liabilities of financial institutions consequent upon utilization of credit lines with financial institutions abroad, as well as those resulting from utilization of letters of import credits and operating account overdrafts;
• state company credit lines abroad and
• Reciprocal Credit Agreement (CCR) debt balance – the CCR is an agreement expressed in foreign currency and signed by Banco Central do Brasil and the central banks of the participating countries (Argentina, Bolivia, Chile, Colombia, Ecuador, Mexico, Paraguay, Peru, Dominican Republic, Uruguay and Venezuela) with the objectives of facilitating payments, intensifying economic relations among the respective countries, reducing international exchange flows among participating countries and stimulating relations among financial institutions.

In the RDE-ROF system, data are included in declaratory form by the debtor or its legal representative. Should the borrower be the General Government (Federal, State or Municipal Governments) or should the guarantor be the Federal Government, registration approval requires prior Banco Central analysis in compliance with legal demands.

Classifications: External debt data are broken down into General Government, Monetary Authority, Banks, Other Sectors and Intercompany Loans, and by original maturity (short and long-term) and by instrument (trade credits, loans, money market instruments, bonds and notes, currency and deposits and other liabilities). The debt instruments can be described as follows:

• Bonds and Notes (Money market instruments): operations based on issue of such securities as bonds, Notes and Commercial Papers, excluding operations under this heading classified as Intercompany Loans;
• Loans: direct financial loan operations, including loans granted by IMF, IDB, World Bank and other multilateral organizations and bilateral agencies. Excludes loans classified as Intercompany Loans;
• Trade Credits: import and service financing operations granted by suppliers (Supplier’s Credit) and by foreign and Brazilian banks abroad (Buyer’s Credit);
• Other debt liabilities: financing obtained from multilateral organizations and bilateral agencies and other external debt operations and
• Intercompany Loans: financial loan operations contracted by nonfinancial private sector companies, including Petrobras, with nonfinancial foreign private entities.

The calculation covers data on the entire short, medium and long-term public or private external debt (operations among residents and nonresidents), for the entire national territory and all economic sectors, expressed in national or foreign currency, in the modalities of financed imports, leasing, service financing and financial loans, as well as all operations or alterations in such records, such as inflows, payments, assumptions, renewals and conversions.

With the objective of improving Brazilian external debt statistics, as of June 2001 Banco Central do Brasil decided to segregate the amounts referring to intercompany loans, which were then classified as direct investments in the country, as well as amounts referring to principal installments of external credit operations matured for more than four months (See Technical Note no. 16, April 2002), from the total external debt. With regard to reclassification of intercompany loans, it should be noted that this procedure is suggested in the 5th edition of the IMF Balance of Payments Manual (BPM5), dated 1993.

• Accounting Plan of Financial Institutions (Cosif): refers to the external debt calculated on the basis of the balance sheets of commercial and multiple banks, including both national and foreign institutions headquartered in the country, the Federal Savings Bank and National Bank of Economic and Social Development (BNDES), remitted electronically to Banco Central do Brasil by the Sisbacen system;
• State company credit lines: data are obtained through reports submitted to Banco Central do Brasil by state companies;
• Banco Central do Brasil Reciprocal Credit Agreement (CCR): data are calculated electronically in Sisbacen system.