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Brazil's BNDES repays 100B reais to Treasury, reduces dividend limits

Banco Nacional de Desenvolvimento Econômico e Social said it completed an early repayment of a debt of 100 billion Brazilian reais owed to Brazil's National Treasury.

"The decision to make a full payment of 100 billion reais was made considering BNDES' net disbursement flow for the next three years and the fact that this anticipation will not affect BNDES' equity structure or the full compliance with banking prudential rules," the state-run lender said in a Dec. 23 news release.

The bank's board also limited the amount of dividends or interest on equity to be paid to the federal government to 60% of its annual net income from an average of 85% distributed between 1997 and 2015.

Additional payment over the mandatory limit of 25%, however, will be conditional on BNDES' capacity to meet internal and external prudential limits in a three-year horizon, the bank noted.

Meanwhile, the development bank is seeking greater transparency in its variable income investments, Valor Econômico reported.

According to the bank's director for the capital market segment, Eliane Lustosa, the bank will consider some new parameters in 2017 with the aim to bolster the country's capital market, the report said.

As of Sept. 30, the bank's variable income portfolio was valued at 85 billion reais.

As of Dec. 26, US$1 was equivalent to 3.27 Brazilian reais.