BRAZILIAN CAPITAL OVERSEAS CENSUS – 2019 BASIS PERIOD

INFORMATIVE TO CLIENTS

MURRAY ADVOGADOS

 

The Brazilian Central Bank started to receive Statements on Brazilian Capital Overseas (CBE) related to the fiscal year 2019, which is mandatory to residents in the country who have assets (goods and rights) against non-residents (including real estates, deposits, cash balances in foreign currency, among others) that totals one hundred thousand American dollars (US$ 100,000.00) or more as of 31st December 2019.

The deadline for submission of the Census’ statements began on 15th February and shall end on 6 p.m. of 5th April 2020.

The delayed or incorrect submission or failure to submit the statement may be subject to fine by the Brazilian Central Bank.

We are at your disposal should you need any further clarification

 

Responsible Attorneys:

Alberto Murray Neto – alberto@murray.adv.br

Eduardo Augusto Murray – eduardo@murray.adv.br

Via Varejo sees new store’s sales at level seen before lockdown

Via Varejo, owner of Casas Bahia and Ponto Frio retail chains, said Monday that sales of stores opened after social distancing measures began to be lifted reached the same level seen before the lockdown. In addition, its online sales’ arm now offsets a good chunk of the revenue lost when the stores closed, CEO Roberto Fulcherberguer says. The group lost 70% of sales after closing brick-and-mortar stores in mid-March and started operating only through its website and apps. But thanks to recent results, the loss decreased to 48% considering the last six weeks, the executive said during a live talk on video promoted by XP Investimentos. “We’re driving the market. We’ve gained almost ten percentage points of market share in the last few weeks. We saw 44% share in cell phone last week,” says the CEO. On Monday, Via Varejo’s shares rose 18.65%, the highest in the B3, to R$7.57 — the better price since March 16, the day before social distancing measures beginning.

Source: Valor Econômico

http://www.valor.com.br/international

Sugar-and-ethanol mills will have credit for storage

Sugar-and-ethanol mills are likely to receive a financing line aimed at storage, after requesting that and two other aid measures from the federal government. The other measures, involving changes in taxes, met resistance in the Ministry of Economy, sources say. In a live talk on video promoted by Valor, Cosan CEO Luis Henrique Guimarães said the financing line could offset the steep demand contraction. Being able to sell 6 billion liters of ethanol in the future under better prices “balances the market at this beginning of the crop,” he says. Talks already involve state-owned Brazilian Development Bank (BNDES) and Banco do Brasil and the idea is also reaching private-sector lenders too.

Source: Valor Econômico

http://www.valor.com.br/international

Big five banks lend R$265.6bn in 30 days

The five largest banks in Brazil – Itaú Unibanco, Bradesco, Santander, Banco do Brasil and Caixa Econômica Federal – have lent R$265.6 billion between March 16 and April 17, the first month of the pandemic, according to the Brazilian Bank Federation (Febraban). The data includes new loans and financing, along with contract renewals and postponed installments. The total is nearly 22% higher than March 2019, but the trade group says the comparison is not possible. Febraban chief Isaac Sidney Ferreira says the numbers show liquidity is not pooling up in banks. However, there are still reports of smaller companies and some economic sectors finding it difficult to borrow. Central Bank President Roberto Campos Neto said on Monday that the government is working to make credit reach those companies.

Source: Valor Econômico

http://www.valor.com.br/international

Banks considering grace period for payroll loans

Brazilian banks study offering grace periods for payroll loans (also known as consigned loans, where the borrowers’ wages are pledged as collateral and payments are discounted from paychecks). Brazilian Bank Federation (Febraban) Chairman Isaac Sidney said lenders are trying to overcome operational problems before launching the measure. “Unlike other lines, consigned credit involves thousands of municipal governments, thousands of companies and states which process payrolls,” he said. Central Bank data puts the outstanding balance of such loans at R$393.4 billion in February, with civil servants making up R$227.6 billion.

Source: Valor Econômico

http://www.valor.com.br/international

Caixa expected to offer R$10bn to very small companies

The federal government is working to hammer out by Tuesday a new credit line from Caixa Econômica Federal to very small companies. The state-owned bank is expected to allocate nearly R$10 billion in working capital loans while businesses are closed or operating below capacity. Nearly 2.2 million companies are expected to benefit. They will be able to receive for two months the equivalent of 30% of last year’s average monthly revenue. The payment period will be 24 months, with a grace period of six months. The government staff considers this period enough for very small companies to resume their activities.

Source: Valor Econômico

http://www.valor.com.br/international

General Data Protection Law

Murray Advogados

*Isabella Silva Machado

 

Introduction

Law No. 13,709 of August 14, 2018, better known as the General Law for the Protection of Personal Data (“LGPD”), appears in the Brazilian legal system as an innovation in the scope of operation, operation and organization of personal data, thus introducing , high standard rules, able to protect individuals from possible invasions of privacy and sharing of personal data.

The present article, therefore, presents the main points that must be observed about the referred Law.

Goals

Article 1 of the LGPD establishes, in a succinct way, that the data processing and regulation brought by the Law aims to protect the fundamental rights of freedom and privacy of individuals, as well as seeks to ensure the free development of the personality of the natural person.

In this sense, the rules now established obey the principle of transparency and standardization, so that the user / consumer has full knowledge of how their personal data will be treated, ensuring that the rules will be applied in a unique and harmonious way, by all agents and controllers that act in the treatment and data collection.

The LGPD also aims to guarantee legal certainty in relations, in order to guarantee free competition, free initiative and the defense of commercial and consumer relations.

Therefore, given the guidelines and objectives of the standard, the need for adaptation on the part of companies and service providers remains evident, since they must standardize their policies for the collection, transmission and treatment of personal data, aiming at greater protection and transparency to users.

Coverage

LGPD is able to regulate any activities involving the use of personal data, including through digital means, carried out by a natural or legal person under public or private law, from the country of its headquarters or the country where the data is located.

The Law also establishes the cases in which it can be applied extraterritorially:

  • The data processing operation is carried out in the national territory;
  • The processing activity aims at offering or providing goods or services or processing data from individuals located in the national territory;
  • Personal data, object of the treatment, have been collected in the national territory.

Furthermore, it will not only be the technology companies that are affected by the LGPD, but any and all companies that deal, in any way, with personal data, whether stored digitally or physically.

In the same way, data processing outsourcing operations, such as cleaning or enriching the database with addresses or purchase profiles, will also characterize the provider as an operator.

 

Personal Data and Sensitive Personal Data

The LGPD brings, in its art. 5, several definitions necessary for the full understanding of data processing.

The most important definitions are “Personal Data” and “Sensitive Personal Data”, which are, respectively, information related to an identified or identifiable natural person and personal data about racial or ethnic origin, religious belief, political opinion, affiliation to union or organization of a religious, philosophical or political nature, data relating to health or sexual life, genetic or biometric data, when linked to a natural person.

Data Subjects Right

As a result of the new regulation, individuals with personal data are guaranteed the right to set limits for their data to be used. Thus, individuals will have the right to know the purpose of the treatment of their data, the form and duration and who will be the controller of their data.

Still, art. 18 of the LGPD brings other rights, namely:

  • Confirmation of the existence of treatment;
  • Access to data;
  • Correction of incomplete, inaccurate or outdated data;
  • Anonymization, blocking or elimination of unnecessary, excessive or non-compliant data as provided in this Law;
  • Data portability to another service or product supplier, upon express request, in accordance with the regulations of the national authority, subject to commercial and industrial secrets;
  • Elimination of personal data processed with the consent of the holder, except in the cases provided for in Article 16 of this Law;
  • Information from public and private entities with which the controller shared data use;
  • Information about the possibility of not giving consent and about the consequences of the refusal; and
  • Revocation of consent, pursuant to §5 of art.8 of this Law.

Penalties

In case of non-compliance with the LGPD forecasts, the company will be subject to administrative penalties ranging from a warning to a fine of up to 2% (two percent) of the billing, limited to R$ 50.000.000,00 (fifty million reais) for infringement.

However, in cases where the company wishes to exempt itself from liability, they must prove that they have not carried out the processing of personal data that is attributed to them that the damage is due to the exclusive fault of the data owner or third party or that although they have carried out the processing of personal data attributed to them, there was no violation of data protection legislation.

Validity

On the subject, it is important to note that Law Project 5.762/19 extends the majority of the LDPG for two years, passing, therefore, from August 2020 to August 2022.

The Project is currently being processed in the Chamber of Deputies nd will be analyzed by the Constitution and Justice and Citizenship Commission and will later go to the Plenary.

 

Samba “schools” mobilize sewists to make masks

Sewists who work on the annual costumes of Rio de Janeiro’s world-renowned carnival parade are helping produce protective masks for hospitals and the low-income community of Nilópolis. Known as samba “schools” and usually competing among themselves, Beija-Flor, Salgueiro and Mangueira are working together under the guise of association Liesa to expand the effort to others. Beija-Flor started first and has been making 1,200 to 1,500 masks a week, as well as donating food and cleaning material to low-income communities of Rio’s Baixada Fluminense region. The help is coming at a critical juncture as densely packed and unsanitary “favelas” in the North and West zones are starting to see the first fatalities from covid-19.

Source: Valor Econômico

http://www.valor.com.br/international

Itaú donates R$1bn to fight covid-19 as big banks gear up for defaults

Itaú Unibanco announced a R$1 billion donation to fight covid-19, the largest private-sector contribution so far. The resources add up to the R$250 million already announced by the lender. Itaú CEO Candido Bracher said an endowment would be created at charity arm Itaú Foundation and a group of experts would decide how to spend the donation. Meanwhile, Itaú and the other Brazilian banking giants are gearing up to deal with stagnating or even falling profits this year as the pandemic pushes up loan default rates. Credit growth forecasts have already stumbled from 13% to a modest uptick, if any. While well-provisioned to cover souring loans, banks are especially concerned about small and midsize companies, where the 90-day default rate is expected to reach 5% to 7% in 18 months from 3.7% before the crisis. Services revenue, already under pressure from the country’s booming fintechs, is also expected to take a hit.

Source: Valor Econômico

http://www.valor.com.br/international

Companies reinforce cash with R$5.5bn in new borrowing

Brazilian companies raised about R$3 billion in corporate bonds and R$2.5 billion in promissory notes over the last five days. The new funds are mostly reinforcing cash reserves, with the bonds and notes held by coordinating banks. Rates went up between 1 to 2 percentage points from recent issues while maturities are on the decline – most carry one-year maturities. Companies able to keep up the business during the crisis are borrowing below the CDI rate plus 2%, say analysts. The list includes Magazine Luiza (R$800 million), MRV Engenharia and subsidiaries (R$200 million), BR Properties (R$250 million) and Águas de Teresina Saneamento (R$102 million). Rodovias Integradas do Oeste, a highway concessionaire, raised R$430 million while ViaMobilidade, which operates two subway lines in São Paulo, borrowed R$700 million with tax-exempted infrastructure bonds. Ecorodovias led the way in promissory notes with a R$1.2 billion, two-year loan at the CDI plus 4%.

Source: Valor Econômico

http://www.valor.com.br/international