Banking | On the Transition of LIBOR in Brazilian Credit Transactions, New Regulation Facilitates the Base Rate Change Into Central Bank System

As a result of the LIBOR (London Interbank Offered Rate) transition process in foreign currencies credit transactions, the Brazilian National Monetary Council (CMN) issued a regulation to facilitate the change of the base rate in the RDE-ROF (Registry of Financial Operations).

According to Resolution CMN 5,011, dated March 24, 2022, in foreign currency credit transactions subject to the registration of ROF, including export prepayments, bonds and direct loans, the change in the ROF will be exempted from the write-off of the original debt registration, the constitution of a new ROF and the performance of simultaneous exchange transactions or international transfer in reais. As a billionaire volume of foreign credit in Brazil is currently indexed to LIBOR, the new Resolution will reduce bureaucratic requirements for transition to new base rates such as Term SOFR and BSBY.


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