The Brazilian government is planning to start levying tax on debt issued in foreign currencies, Reuters reports, citing Valor Economico. The state is concerned about the exposure to exchange rates by companies that issue corporate debt in other currencies. Brazil had previously scrapped a 0.38% tax on foreign currency loans, known as the IOF, in 2008. The move was initiated to boost short-term capital inflows during the worsening of the global credit crisis.
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