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Federal Debt Total, Congress To Analyse Bill on Taxing Offshore Funds

BRAZIL
  • Brazil will release its federal debt numbers after the central government budget surplus was higher than expected in October at BRL18.3b vs 15.5b estimate. Data is due at 1730GMT//1230ET.
  • Congress is expected to analyse the bill aimed at increasing taxation on exclusive and offshore funds; Senate may also tackle the bill aimed at levies on websites focused on online gambling.
  • The central bank published a resolution which establishes the procedures for calculating the capital requirement for operational risk. The new methodology for the calculation is reported to be more sensitive to risk, and increases the comparability of capital requirement for various institutions of the National Financial System, known as SFN.
    • The adjustment represents the local adoption of recommendations of Basel Committee.
    • Central bank estimates that new rule will require 34b reais ($7b) in additional capital for SFN.

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