Rio, May 31, 2004 (Agência Brasil) - The transfer of funds from abroad by Brazilian emigrants who work outside Brazil is the theme of the first national conference on this subject. The conference is being held in Rio de Janeiro with the participation of representatives of the government, multilateral institutions, national and foreign private financial entities, non-governmental organizations, and foundations.

The meeting "Transfers as an Instrument of Development" is sponsored by the Getúlio Vargas Foundation's School of Public and Business Administration (Ebape/FGV), in partnership with the Inter-American Development Bank's Multilateral Investment Fund (Fumin/IDB).

According to IDB studies, presented at the Bank's annual meeting in March, Brazilians sent US$ 5.2 billion to Brazil last year. The encounter will assess the impact of these transfers as an instrument of economic development and their importance to the balance of Brazil's external accounts. Ways to reduce the costs of transferring funds to the country will be discussed.

The IDB hopes, for example, that the Brazilian Central Bank will consider the possibility of tax exemption for transfers of up to US$ 1,000. According to Donald F. Terry, manager of the Fumin/IDB, the rules currently in effect may be hampering domestic investments.

According to Terry, transfers that are now used to take care of the basic needs of Brazilian families could be redirected to savings, home purchase plans, and small investments, if the rules were modified.

Reporter: Daisy Nascimento
Translator: David Silberstein