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foreign lenders in connection with its post-June 28, 1985,
restructuring debt interest remittances to them, continued to report
to the foreign lenders that it received a “pecuniary benefit” equal
to 40 percent of the withholding tax imposed. For example, by
letter dated November 19, 1985, Mancel Borges de Oliveira (Mr.
Oliveira), a division head of the Central Bank’s Department of
Foreign Capital Fiscalization and Registration (FIRCE), forwarded
to Morgan Bank (which served as the agent bank of the foreign
lenders for the phase II CGA) group DARF’s covering purported
withholding tax the Central Bank had paid on behalf of numerous
foreign lenders with respect to its phase II CGA interest
remittances to them on September 27, 1985. Mr. Oliveira’s November
19, 1985, letter to Morgan Bank stated, in pertinent part:
We refer to the * * * [phase II CGA], among Banco
Central do Brasil (the “Borrower”), Republica Federativa
do Brasil (the “guarantor”), certain financial
institutions (the “Banks”) and * * * [Morgan Bank] (the
“Agent”). Terms in this letter have the same meaning
described to them in the * * * [phase II CGA].
In this respect, in compliance with section 6.3 of
the * * * [phase II CGA], we hereby provide you certified
copies of [withholding] tax receipts evidencing the
payment by Banco Central do Brasil, effected on
September/85, which are attached.
In his November 19, 1985, letter, Mr. Oliveira provided the
exchange rates the Central Bank had used in calculating the
purported withholding tax imposed with respect to these interest
remittances to various foreign lenders. Mr. Oliveira also enclosed
supporting schedules the Central Bank had prepared setting forth
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