On 20 November 2018, entered into force the Instruction No. 14/2018, of 19 November 2018, which establishes rules regarding the amount and remuneration of collateral deposits associated to letters of credit.
This statute provides that, in situations where Commercial Banks decide, on the basis of their own assessment of the client’s credit risk, to require a collateral deposit for the coverage of credit letter payment risk, the amount of said collateral should not exceed the amount of the credit letter, converted into the domestic currency at the Commercial Bank exchange rate at the moment of the constitution of the collateral.
The Instruction also provides the sanctions to be applied for breach of the rules set forth therein.

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