Population: 186,112,794

Economy Overview:

Possessing large and well-developed agricultural, mining, manufacturing, and service sectors, Brazil's economy outweighs that of all other South American countries and is expanding its presence in world markets. From 2001-03 real wages fell and Brazil's economy grew, on average, only 2.2% per year, as the country absorbed a series of domestic and international economic shocks. That Brazil absorbed these shocks without financial collapse is a tribute to the resiliency of the Brazilian economy and the economic program put in place by former President CARDOSO and strengthened by President LULA DA SILVA. In 2004, Brazil enjoyed more robust growth that yielded increases in employment and real wages. The three pillars of the economic program are a floating exchange rate, an inflation-targeting regime, and tight fiscal policy, all reinforced by a series of IMF programs. The currency depreciated sharply in 2001 and 2002, which contributed to a dramatic current account adjustment: in 2003 and 2004, Brazil ran record trade surpluses and recorded its first current account surpluses since 1992. Productivity gains - particularly in agriculture - also contributed to the surge in exports, and Brazil in 2004 surpassed the previous year's record export level and again posted a current account surplus. While economic management has been good, there remain important economic vulnerabilities. The most significant are debt-related: the government's largely domestic debt increased steadily from 1994 to 2003 - straining government finances - before falling as a percentage of GDP in 2004, while Brazil's foreign debt (a mix of private and public debt) is large in relation to Brazil's small (but growing) export base. Another challenge is maintaining economic growth over a period of time to generate employment and make the government debt burden more manageable.

General Business Practices

a) The main language is Portuguese and it is used in all court proceedings. Any files for legal actions, claims, suits, etc. should be translated into Portuguese language.
b) Documents in foreign languages should be translated into portuguese by a a sworn offical translator. c) Foreign documents such as ID copies, company`s registration certificates and other official documents and their copies are required in the judicial proceedings need to be autenticated by the Brazilian consulate in the foreign litigant country.
d) Some legal suits require a colateral from the foreign litigant acting as a plaintiff to guarantee the legal costs if the suit is won be the Brazilian defendant.
e) The Brazilian currency is the Real. (R$). Any legal claim should have its amount in Real. Bills and contracts expressed in foreign currency should have the amount exchanged into Real.

Collections.

A. Industry Background

1. There is not an estimate figure for the Brazilian collections. In Brazil there is no an association or other representative organization of collection companies, therefore, it is not possible to estimate the figues for collection activities. Credit reporting companies publish the insolvency rates but not the financial amount involved.

2. Debt collection is handled either by collection companies – which operates mainly in the local market – and by law firms.

3. The law firms have very important activities in the debt collection field because any legal claim should be done by a Lawyer.

B. Licensing requirements

No licence is required. Debt collection companies just need to be legally incorporated according to the Brazilian Law. Furthermore, consumer claims are strongly influenced by Codigo de Defesa do Consumidor (Brazilian Consumer Defence Code) and should follow its rules, mainly regarding the consumer right of privacity and high respect treatment.

The Law Firms need to foll