Concept
Loans in foreign currency, as regulated by Resolution 2770.

Terms & Conditions
Minimum onlending term authorized by the Brazilian Central Bank is 90 days, with the exception of credit lines already undertaken with terms of less than 90 days.

Collateral
Collateral signatures from partners and spouses with shareholder control.

Financial Charges
The cost of the loan consists of a monetary correction factor plus the charges related to the external credit line utilized. The bank combines these charges (external interest, Income Tax on interest received), adds an onlending commission and levies a fixed rate of interest. The bank's remuneration is from the onlending commission.

Taxes
The Financial Transactions Tax (IOF) levied on traditional bank loans in Brazilian currency, such as mutual loans and discounted trade notes, is not applicable to these loans.

Tariffs
Tariffs are not levied.

Product Policy
Minimum value is US$ 100,000.
Terms should coincide with due date of the external credit line utilized.

Advantages for the Client
Alternative source of financing as part of average fundraising costs. 

Elimination of Exchange Rate Risk
Depending on market conditions, exchange rate risk can be eliminated through the use of a hedge operation set up by a financial institution.