The FLÆGMAG of Fine Luxembourg Æ Group

Luxembourg-Brazil, a World of Opportunities

Brazil4

Jonas DonizetteMayor of CaMpinas City - BraziL

SUMMARY

The FLÆGMAG of Fine Luxembourg Æ Group I Publishing Director: Flag.lu I Editorial staff: Guilherme Bezerril, Yves Speeckaert, Carolina Thiede, Clélia Campos and Bernadette dos Santos I Conception & coordination: 360Crossmedia I Artistic director: Franck Widling I Sales: F@flag.lu I  Cover credit: DR I Print run: 1.500 copies.

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05. EdiToriAL

06. inTroducTionEditorial FLÆG4BRAZIL

08. MAyorEsch-sur-Alzette: from steel to knowledge

10. MAyor & covEr SToryCAMPINAS CITY: Campinas is a hub of information technology, but also agribusiness and logistics

12. BuSinESS FAciLiTATor Luxembourg for Finance: the business facilitator

14. FocuSLuxembourg: a small country with great opportunities for Brazilian entrepreneurs

16. chAMBEr oF coMMErcELuxembourg: A European hub for foreign investment

18. LonG SToryBreaking the inflation cycle

20. cASE STudyBRADESCO: Building a bridge between Brazil and Europe

22. LAwA Partner to cross-borders deals and Investments

24. ASSociATionPromoting Luxembourg in the Brazilian markets

26. TESTiMonyProductivity and the Brazilian know-how

28. MuSicThe unique voice of the mandolin of Hamilton de Holanda

30. cuLTurEFestival du Film Brésilien - Luxembourg: Diversity and Brazilianess

32. nGoCOMMITTEE FOR LIFE (CPV): Building the future in Rio’s Favelas

34. nETworKinGCeos’ favourite addresses

Pochon Lawyers & Associates

Establishing your companyin Luxembourg? For a talented legal support,contact us.Brigitte Louise POCHON, Avocat à la Cour

CORPORATEDomiciliation of CompaniesCorporate LawIntellectual Property & Information TechnologyMaritime Law: Luxembourg FlagInvestments Funds

LITIGATION & DISPUTE RESOLUTIONCommercial LitigationCivil LitigationEmployment Law & BenefitsReal Estate Construction & Environment

Pochon Lawyers & Associates S.àr.l.18, rue Robert Stümper / L-2557 LuxembourgTél.: +352 26 44 591 / Fax: +352 26 44 07 99Email: contact@pla.lu

www.pla.lu

Brazil4

EDITORIAL

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Fine Luxembourg Æ Group (FLÆG) is proud to present its first FLÆGMAG “for a country” - FLÆG4BRAZIL - prepared at the occasion of The Economist© Events’ 4th Brazil Business Summit organized in Paris on July 4.

FLÆG4BRAZIL will help you appreciate the commitment of the Grand-Duchy of Luxembourg for Brazil & the growing cross-border dynamics and interdependencies between the two countries - not only @ the Economical, Financial, Funds & Trade level but also @ from the Art, Cultural, Philanthropic & Sport point of view.

This FLÆGMAG was realized in a unique FLÆGSPIRIT® that unites the Members & Partners of FLÆG under the expert leadership of Yves Speeckaert, Head of FLÆG4BRAZIL.

FLÆG regards,

FLÆG4EDITOF@flag.lu

dEAr inTErnATionAL LEAdinG dEciSion MAKErS, EnTrEPrEnEurS, FAMiLy oFFicErS & invESTorS,

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InTRODUcTIOn

Fine Luxembourg Æ Group (FLÆG) asbl ASBL , as a not-for-profit association regrouping private entrepreneurs, industry associations and cultural/ dip-

lomatic leaders, aims to play a role in strength-ening Luxembourg visibility in these emerging markets.

Brazil is an impressive country by all standards. The fifth largest country by size, the seventh largest economy, it holds the largest reserve of soft water, the largest acreage of tropical agri-culture and of equatorial forest, and holds now one of the largest reserve of petroleum (pre-salt fields off shore) in the planet. Beyond this, few people are aware that Brazil is the third largest manufacturer of planes (Embraer) and the 6th largest of cars. Its biotechnology, pharmaceuti-cal, optical, and tropical agriculture research centers are also second to none.

As the Brazilian government and private sector embarks on an ambitious capital investment pro-gramme of over BRL 900 Billions, through PPPs,

to upgrade Brazil’s roads, railways, intercities TGVs, urban transports and health infrastruc-tures, Luxembourg does have a role to play in it. Few Brazilians are aware that Luxembourg, through its large investment fund industry and its leading headquarted companies, is the sec-ond FDI investor in Brazil. The Private equity funds and Luxembourg based holdings can play a leading role in making some of these PPPs and promising start up project a reality.

Through this first edition of FLÆG4BRAZIL, and through the enthusiastic participation of leading institutions, entrepreneurs and corpo-rate citizens, we hope to contribute to a new era of tighter cross border relationships between Luxembourg and Brazil. This editorial effort will be followed up by other, semi-annual FLÆG4BRAZIL editions. Lets further discover each other’s world, culture and opportunities.

Yves Speeckaert, head of FLÆG4BrAZiLdirector, AiF Funds

IN THESE TIMES OF GLOBAL POLITICAL TuRBuLENCE AND RENEWAL, AND WHEN BRAZIL IS SHOWING ALL THE STRENGTH OF A LIVELY AND BY ALL MEANS HEALTHY POLITICAL DEBATE INTERNALLY, WE ARE BEING REMINDED OF THE NEW ROLE OF THESE LARGE EMERGING MARkETS, AND BRICS COuNTRIES IN PARTICuLAR ON THE WORLD SCENE.

EDITORIAL FOR FLÆG4BRAZIL

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cOULD YOU pLEASE ExpLAIn ThE MAIn FEATURES OF ESch-SUR-ALZETTE In A FEW WORDS?We are the second city of Luxembourg, counting 32,000 inhabitants from 105 nationalities and known for its steel industry history. After a decline in the 70’s, we changed our focus completely during the 90’s. This structural change was confirmed in 2005 when the government chose our city to host the University of Luxembourg. From 2014 onwards, the University of Luxembourg is hence going to be located in Esch. In this sense, we are moving from a steel metropolis to a city of knowledge. We dispose of the space and infrastructure, as well as of the sup-port of the national decision makers. In addition, two major development companies are involved in the project: the FONDS BELVAL for public investment (university, public buildings, research centers) and AGORA, a private investment company.

WhIch ARE ThE nEW EcOnOMIc/ SERvIcE AREAS ThAT YOU ARE cURREnTLY DEvELOpInG?We have put the focus on new development areas before 2005 already, with the establishment of the Technoport, a business incubator which used to be part of the Public Research Centre Henri Tudor. Every year, about 120 SMEs make the transition from invention to innovation in new research fields and develop cutting edge economic activities. Gerard Lopez (Luxembourgish businessman and Chairman of Lotus Formula One) invested, for instance, in the Skype Center from this place. Areas such as bio-medicine, environment, energy, high-tech, laborato-ries, and new materials are currently being developed

in Esch. We are a Technopole and ambition to become a Biopole as well.

WhAT IS ThE MAIn MESSAGE YOU WOULD LIkE TO SEnD TO LATIn AMERIcAn AnD BRAZILIAn InvESTORS AnD vISITORS?Investors are interested to know the location they chose for their business; we have an important theater, a big music hall, alternative cultural centers, one of the biggest 3D cinemas in Europe and the longest shopping streets of the country. Apart from the important industrial activities, 1/3 of the city’s area is composed of green spaces. In the past 4 years, we have invested in architectural projects developed by famous national and international architects. I would gladly receive you and show you my city, and take you to the FONDS BELVAL and to AGORA, in order to exemplify what we are doing and which opportunities our city can offer. The next step would be to put you in contact with companies that might be of interest to you to develop synergies.

DO YOU LIkE FOOTBALL/SOccER? DO YOU InTEnD TO FOLLOW OR EvEn GO TO BRAZIL FOR ThE WORLD cUp?We have a strong link with soccer and it has been quite a good year for us sor far; Recently, one of our two soccer teams, C.S. Fola Esch, won the national cham-pionship, as well as two other cups. So, Esch won the three major soccer trophies this year. The other team the Jeunesse Esch is also among the best teams of the country. I have never been myself a football player but I like it. I have been to Brazil to Salvador da Bahia and to Itaparica Island and I would like to go again in 2014 for the official opening of a cultural center designed by a Luxembourg based architecture firm. I would then like to meet Brazilian investors, as I am also head of the Health Committee in the Parliament and there-fore very interested in biomedicine.

INTERVIEW WITH MS. LYDIA MuTSCH, MAYOR OF ESCH-SuR-ALZETTE

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I would gladly show my city to brazilian investors and visitors.Lydia Mutsch

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FROM STEEL TO knOWLEDGE

EsCH-sUr-aLzEttE

cAMpInAS IS AMOnG ThE 10 RIchEST cITIES In BRAZIL AnD IS A cLEAR cASE OF nATIOnAL SUccESS. WhAT ARE ThE MAIn ADvAnTAGES OF cAMpInAS?The politics of attracting investments is focused in the potential that the city can offer in terms of infra-structure and quality of life. The service sector is what stands out the most in the economy, as well as a strategic logistical position. Campinas is endowned with highways that cross the city and also Viracopos International Airport, which is the largest in terms of cargo transport in Brazil. Campinas enjoys skilled manpower, good mobility and quality infrastructure. Benefits that ultimately revert back to the municipal-ity, with the creation of jobs and higher tier salaries. The road network of the city links it to Sao Paulo, with easy access to the port of Santos, the Vale do Paraíba and to the south of Minas Gerais state. The universities - mainly Unicamp - attract graduate stu-dents from other parts of Brazil and the world.

In YOUR OpInIOn, WhIch ARE ThE MAIn chALLEnGES OF cAMpInAS In ThE cOMInG YEARS?Demands are high in education and health, but the partnerships the municipal government is forging, at the state and federal level, have helped to mitigate some of these obstacles. Our biggest challenge is to establish a sustainable city, providing for orderly and environmentally friendly growth, whilst at the same

time generating employment and fostering SMEs enterprises.

BEInG ThE ThIRD LARGEST BRAZILIAn ScIEnTIFIc pOLE, AnD cOnSIDERED ThE “BRAZILIAn SILIcOn vALLEY,” WOULD IT BE pOSSIBLE TO ESTABLISh A GREATER ExchAnGE BETWEEn LUxEMBOURG, WhIch IS ALSO A cEnTER FOR nEW TEchnOLOGIES, AnD cAMpInAS? We are open to Luxembourg government and com-panies in the country that may be interested to do business and settle in Campinas. Apart from the incentives and social infrastructure already men-tioned, we also offer some tax incentives for compa-nies that bring benefits to our city.

LUxEMBOURG IS ThE SEcOnD LARGEST InvESTOR In BRAZIL (ThROUGh InvESTMEnT FUnDS). In WhIch AREAS YOU WOULD LIkE TO SEE MORE InvESTMEnTS In YOUR cITY? Campinas is a hub of information technology, not only thanks to its diverse industry but also due to its higher education institutions and research centers. Also, agribusiness is an area in which new features will certainly provide good return to investors. A third interesting segment is the logistics, as the con-fluence of an international airport as Viracopos and highways that cross the region of Campinas, makes it one attractive option for new ventures, whose potential still widens out if we consider the future investments in the railway segment, with the Construction of the TAV and the implementation of regional trains project.

INTERVIEW WITH JONAS DONIZETTE, MAYOR OF CAMPINAS CITY - BRAZIL.

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cAMpInAS IS A hUB OF InFORMATIOn TEchnOLOGY, BUT ALSO AGRIBUSInESS AnD LOGISTIcS

CaMpinas City

cOULD YOU DEScRIBE ThE AGEncY AnD ITS OBjEcTIvES In A FEW WORDS?LFF has been created in 2008 as a public-private partnership between the Luxembourg government (Ministry of Finance) and the Luxembourg finan-cial industry federation (PROFIL). The Minister of Finance, Luc Frieden is our Chairman and Nicolas Mackel is our new CEO. Our missions overseas are open to the whole financial sector and usually get a good turnover of about 70 participants. Our main objective is to coordinate the development and the promotion of the Luxembourg financial center abroad.. Our international relations department, which I am heading, organizes missions abroad and takes part in conferences and specific finan-cial fairs. We organize 5 to 6 international missions per year and also receive representatives from other countries. Recent missions were in the Middle East (Dubai, Saudi Arabia), China, Scandinavia and Brazil, which is a growing target market for us. We decide jointly with the Ministry and our stakeholders to coordinate missions. LfF and its stakeholders are getting increasingly known abroad.

LUxEMBOURG IS OnE OF ThE WORLD’S TOp 5 FInAncIAL cEnTERS AnD ThE 2nD LARGEST cEnTER FOR ThE FUnD InDUSTRY. WhAT ARE In YOUR vIEW ThE cOMpETITIvE ADvAnTAGES OF LUxEMBOURG AS A FInAncIAL cEnTER?Luxembourg is a hub in Europe and offers out-standing cross-border services. We have about 70 double-tax treaties, and solid regulatory and fiscal structures they can benefit from. We have a proac-tive financial regulator (the Comité de Surveillance des Services Financiers (CSSF)) and also offer a

stable regulatory framework for funds and banks. As a result Luxembourg is one of the favorite hub in which to domiciliate funds and banking institu-tions. I see it as a strong trend that is taking hold over the years. BRAZIL (OnE OF ThE BRIcS nATIOnS) IS qUIckLY EMERGInG AS ThE LEADInG InDUSTRIAL pOWER In ThE SOUThERn hEMISphERE. WhIch InITIATIvES ARE LFF TAkInG, AIMED FOR BRAZIL? We held a mission in 2012 and are preparing the next one for 2014. On that occasion we prepared specific brochures and documentation regarding cross border services that can be developed between our two countries. The relationship with Brazil is getting more intense and LfF is playing its role in it. This is why we are also sponsoring the Private Wealth Brazil Forum, which will be held on 11 June 2013 at Hotel Tivoli, Sao Paulo, with our current CEO being a keynote speaker. Should Brazilian be interested in investing in Luxembourg, they can find good information at the Chamber of Commerce or in the government web-site – guichet.lu. If they want to create financial structures or funds they can check our website www.luxembourgforfinance.lu

WhAT IS YOUR MESSAGE TO ThE BRAZILIAnS? Luxembourg based funds and investors are together the second largest investor in Brazil. We have also a significant amount of Portuguese population with strong cultural links who are very interested in Brazil (around 1/5 of our population). Over the last 5-6 years, I have noticed that Brazil is becoming more open. Brazilians are very pleasant people to do business with and very professional. The Brazilian mentality is straightforward which makes business easier. As for Luxembourg, our center is ideal to start a company and to domiciliate funds, for instance. Luxembourg can definitely be their perfect gateway to Europe.

INTERVIEW WITH EDITH STEIN, HEAD OF INTERNATIONAL RELATIONS DEPARTMENT OF LuxEMBOuRG FOR FINANCE (LFF).

ThE BUSInESS FAcILITATOR

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LUxEMBoUrg for finanCELuxembourg can definitely be the perfect gateway to Europe for brazilians.Edith Stein

the new Brazilian entrepreneur profile has a more aggressive approach towards the market and wishes to expand their busi-ness abroad, especially considering the

favorable moment for the “made in Brazil” brand around the world.

Traditionally, Brazilian entrepreneurs act in for-eign markets through intermediaries, such as traders, ending up with a much lower return on their investment, as they would if they acted directly in the target markets. But this has gradu-ally been changing.

The majority of Brazilian entrepreneurs wish to directly operate abroad. In this scenario, the European Union (EU) is considered one of the main strategic markets, having an internal con-sumer market of over 500 million people, who enjoy a high average purchasing power, and gen-erating a large part of the world’s total economic output. Besides, Europe can also be used as a plat-form to achieve other areas and markets, like Asia and the Middle East.

So, the question for Brazilian entrepreneurs would be where to strategically set up its own business hub in Europe in order to fully enjoy the benefits

of the EU market? Many reasons point to Luxembourg as the answer to this question.

Over the past decades, Luxembourg has proven to be an ideal place for doing business. The country has developed over the years, creating a dynamic and collaborative market place. Its excellent infra-structure, a privileged location in the heart of Europe, reducing logistics costs, and an almost unparalleled high quality of living make it a top place to live and to develop business. From a legal and tax perspectives, Luxembourg offers tailor-made approaches for business creation and the tax framework is considered to be among the most stable and rewarding in Europe for companies1, their shareholders and employees.

Particularly from the perspective of Brazilian entrepreneurs, such advantages, combined with cultural characteristics, availability of a high spe-cialized and international work force, etc, make Luxembourg an extremely attractive location for these entrepreneurs. The Portuguese language is also widely spoken in Luxembourg, because of its large Portuguese community. In addition, the two countries are well connected through regular flights operated by Cargolux, one of the leading cargo airlines worldwide.

IN SPITE OF ALL THE OBSTACLES AND COSTS TO ESTABLISH A COMPANY TODAY IN BRAZIL, THE COuNTRY SHOWS IMPRESSIVE BuSINESS EMERGENCE FIGuRES. NOWADAYS, BRAZIL IS ONE OF THE COuNTRIES THAT START THE MOST BuSINESS PER YEAR IN THE WORLD AND THESE ENTREPRENEuRS ARE IMPORTANT CATALYSTS TO THE MODERN TRANSFORMATIONS THE COuNTRY IS uNDERGOING.

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Brazilian entrepreneurs may also be interested in special investment vehicles provided under domestic legislation, which may represent a good opportunity for entrepreneurs to combine their operations with a dedicated private wealth invest-ment strategy.

In conclusion, the internationalization of Brazilian businesses, with the disposal of intermediaries, translates in a higher return on investment for the entrepreneurs and, therefore, enabling them to reinvest the cash in Brazil or elsewhere according to their business plans. If the complexity of foreign markets - in matters of legal, tax and regulatory frameworks - is one of the biggest concerns when setting up a business abroad, Brazilian entrepre-neurs should not fear entering the EU market through Luxembourg. The many favourable fea-tures of this small country, as presented above, make it a fantastic place for designing business expansion to new frontiers and Brazilian entrepre-neurs fit perfectly in this picture. With our large experience and knowledge of the market, we have been successfully assisting many Brazilian entre-preneurs on this task and we keep continuously expanding the relations between these two countries.

1. Nowadays, the combined corporate tax rate in Luxembourg city is of 29,22%, but companies may take advantage of investment tax credits, VAT advantages, R&D and innovation programs, an extensive tax treaty network (including with Brazil), among other aspects. It is essential to point out that, since 2011, Brazil removed Luxembourg from its list of privileged tax regimes, creating new struc-turing opportunities between these countries. The two governments have been working on an increasing mutual cooperation.

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A SMALL cOUnTRY WITh GREAT OppORTUnITIES FOR BRAZILIAn EnTREpREnEURS

SERGE SAUSSOY, tax partnEr, priCEWatErHoUsECoopErs LUxEMBoUrg.

I could give you a thousand reasons to invest in Luxembourg.Pierre Gramegna

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cOULD YOU DEScRIBE LUxEMBOURG TO US In A FEW WORDS?The Grand Duchy of Luxembourg is a country blessed with many assets due to many factors, in particular its geography. This very dynamic coun-try is at the centre of the European single market. Luxembourg is a real launchpad for reaching the 500 million consumers in the European market. It’s also a very open country, a genuine melting pot of European integration, with a foreign popu-lation of nearly 44% and a very sizeable number of cross-border workers. Europeans and many other nationalities all come to Luxembourg and find work here. It’s not a great surprise, therefore, that nearly three out of four business start-ups in Luxembourg are foreign. Luxembourg is therefore a European hub for foreign investment, most notably in the real estate sector.

WhAT ATTRAcTS REAL ESTATE AnD pRIvATE EqUITY SpEcIALISTS TO LUxEMBOURG?I could give you a thousand reasons. Luxembourg is a country where the value of the land and the real estate has experienced one of the steadiest increases in value worldwide. Prices have increased constantly since the end of the Second World War, which is simply spectacular. That said, I must emphasise that this is not the result of uncontrolled speculation, but long-term invest-ment. The country enjoys considerable stability,

thanks to its legal framework and its economic and fiscal policies. All these elements enable very sound investments with good future prospects. In addition, the politicians do everything possible to retain the laws in place, only changing them when it’s really necessary. After all, it’s a well-known fact that investors don’t like change. Along with the stability and the political and economic con-sensus, the country enjoys a good deal of social harmony. Last but not least, Luxembourg is an important financial centre, which is conducive to real estate investments. Our financial market is well known for its funds management. Many of the real estate investments in Luxembourg are in the form of investment funds or financial vehicles.

WhAT DOES ThE chAMBER OF cOMMERcE DO TO ADvERTISE ThE cOUnTRY’S ASSETS AnD MAkE InvESTORS’ LIvES EASIER?We participate in trade fairs, such as MIPIM. The Chamber of Commerce is also the founding mem-ber of two public-private partnership agencies, Luxembourg for Finance and Luxembourg for Business. The Chamber of Commerce is the lynchpin of these organisations and is therefore very closely involved. We willingly welcome for-eign delegations, to present the country, and we also go abroad to represent the Grand Duchy of Luxembourg in the presence of our Ministers and our Head of State, the Grand Duke, by organising missions to promote trade.

More inForMationwww.myofficialstory.com/pierregramegnawww.cc.lu

PIERRE GRAMEGNA, MANAGING DIRECTOR OF THE LuxEMBOuRG CHAMBER OF COMMERCE, ANSWERS OuR quESTIONS.

LUxEMBOURG: A EUROpEAn hUB FOR FOREIGn InvESTMEnT

chAMBER OF cOMMERcE

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LOnG STORY

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the economic history of Brazil in the sec-ond half of the XXth century has been a rocky road. From the “Economic Miracle” of the 1950s, 60s and 70s, to

the hyperinflation years of the 1980s and 1990s, it seemed that Brazil was always poised to eco-nomic instability. No longer, since the Real Plan of 1994, the country has achieved nearly 20 years of single digit inflation and has become a creditor country to the IMF. Within the period 1967/94 the accumulated inflation in Brazil amounted to the amazing fig-ure of 1,142,332,741,811,850% (FGV - IGP/DI). Since 1979 there had been 13 frustrated attempts to stabilize inflation. The Real Plan introduced in Dec/93 finally achieved the key goals of reducing and controlling inflation at low levels. Annualized inflation rate of 5,150% p.a. as at June/94 felt down to 10% p.a. as at Dec/00. Brazilian yearly inflation averaged, ever since 2000, single digit figures (except in 2003) – an amazing achievement.

Developed and implemented by Mr. Fernando Henrique Cardoso (“FHC”), finance minister, who subsequently became president, together

with a team of bright economists, the Real plan diagnosed the fundamental causes of the Brazilian pre/93 inflation, including the public deficit of the state and the inflationary inertia.

Real Plan phase I (94/99): consisted in smoothly, but effectively, modifying the basis and controls over the fiscal policy to adopting a new mone-tary regime (the “Real”). This consisted in essence of three main actions: a) budget balanc-ing (adjustment of short term fiscal deficit), b) introduction of a price index to stabilize the prices; and c) monetary reform, through the introduction of the new currency, the “Real”.

While apparently simple, the plan was designed as a complex puzzle and implemented after a coordinated preparatory work and a series of combined subsequent steps and control measures.

THE REAL ECONOMIC MIRACLE OF BRAZIL TOOk PLACE IN THE MID 1990S WHEN PRESIDENT FERNANDO HENRIquE CARDOSO BROkE THE BACkBONE OF THE COuNTRY HYPERINFLATION THROuGH THE “REAL PLAN”.

BREAkInG ThE InFLATIOn cYcLE

Having fully beaten inflation and maintained such positive results for near 5 years, the Real Plan phase I ended up facing the harsh effects of the East Asian/Russian economic crisis (97/mid-98). Brazil´s Central Bank (“BACEN”) was forced to abandon the regime of “band exchange” (quasi-fixed exchange rates) by Jan/99, which resulted in currency exch. rates floating.

A quick reaction and thorough shift in strategy then took place. The new rationale was com-prised of orthodox macroeconomic policies that later became known as “Macroeconomic Tripod” (these underlying, innovative, concepts differed from those of the original Real Plan). This consisted in a floating exchange rate, infla-tion targeting and fiscal control, though keeping mandatory (by law) budget surpluses with rigid debt payments. The revised plan´s results were very satisfactory in terms of inflation control. However, due to the excessive emphasis put on reaching primary surpluses, there was a manifest contraction of public investments which caused disappointing economic growth.

Within the period Mar/06 – Sept/08, Mr. Guido Mantega took office as finance minister. Brazil´s macroeconomic policy was again subject to a number of adjustments including declining inflation goals (fixed at 4.5% p.a.) and decrease in the ratio of primary surpluses, allowing for higher investments by the public sector. The Floating Exchange rate policy was also adjusted and renamed “Managed Exchange Rate” (“Cambio Administrado”), thus stimulating for-eign investment and foreign trade. The mini-mum wage was also raised, inducing higher production and economic activity.

The adjustments above added economic growth stimulus. Price stability (vital achievement) was then combined with exchange rate stability and real terms wage increases (plus “Bolsa Familia” subsidies). Foreign Direct Investments (FDI) increased and Brazil s internal market expanded sharply, leading to higher wages and added pur-chasing power.

BRAZIL AS A BRIc EcOnOMIc pOWER (2013)Worldwide crisis stirred economies but did not, so far, put at risk the inflation stability controls inaugurated with the real plan in 94. Brazilian currency remains strong, inflation under con-trol (although rising to 6.59% in Mar/13) and unemployment low (5.6% Feb/13) as conse-quence of the substantial growth obtained in internal consumption, boosted by credit expan-sion. As a result, 40 Million people joined the middle class and shared social and economic gains.Brazil is the sixth largest economy worldwide and the leading LatAm economy. This is due to generous reserves of natural resources, a grow-ing/developed internal market and a huge export potential (commodities, services, tourism and manufacturing production). Hedged by rising domestic demand, increasingly skilled work-force (scientific/technological developments) Brazil counts with extra economic leverage and is destined to continue to attract FDI and con-firm its status of one of fastest-growing economies.

Guilherme BEZERRILvice President Luxembourg Brazil Business council asbl

glance at the great results - Chart – historic Cpi inflation Brazil (yearly basis) – full term

Table – historic inflation Brazil (cPi) – by year (source: inflation.eu)

WhEn BRADEScO EUROpE hAS OpEnED Up ITS LUxEMBOURG OFFIcES AnD WhIch OBjEcTIvES WERE YOU pURSUInG AT ThAT TIME?Banco Bradesco Luxembourg S.A. has started its activities in Luxembourg on 2002 with the acqui-sition of Bank Banespa International. In 2003, the bank merger with Banco Mercantil de São Paulo International (due to the acquisition of this Bank in Brazil). On that opportunity, the main purpose of the Bank was Private Banking, however back office oriented. Since 2010, with a new name which is Banco Bradesco Europa, we became more front office oriented and totally focused on the business opportunities between Brazil and Europe. Our main goal nowadays is to achieve the two ways street of investments flow between Brazil and Europe, which may be either for individual or for corporations. hOW DID ThE nEED OF ThE BRAZILIAn InSTITUTIOnAL AnD pRIvATE cLIEnTS EvOLvED OvER TIME? WhAT RAnGE OF SERvIcES DO YOU pROvIDE TODAY TO ThE BRAZILIAn cLIEnTS?Brazil, over the last years, jumped from the coun-try of the future to the realistic situation of the 6th

largest economy of the world. The country becomes recognized in the international commu-nity and consequently the investor and customers are highly level demanding. With the main busi-ness pillars like Private Banking as well as Corporate and Trade Finance, Bradesco Europa is prepared to attend such customers and investors from a very simple investment transaction until a very sophisticated tailor made international struc-tured deal. Moreover, with this strategic presence, we are prepared to attend either the Brazilian cus-tomer or the European investors both in Brazil and in Europe. hOW DO YOU pERcEIvE ThE OppORTUnITIES FOR BRAZILIAn InvESTORS AnD EnTREpREnEURS In ThE EU? The Brazilian economy went through a series of reforms during the last 2 decades. Starting with the stabilization of the economy in 1994, reach-ing the mature status with the Fiscal Responsibility Law in 2000 and most recently with the Public-Private Partnership announced by the Brazilian Government in 2012 (Roads, Airports, Railways, Ports), we can see a lot of business opportunities rising. Moreover, support-ing the World Cup in 2014 and with the Olympic Games in 2016, it is expected to boost the econ-omy for the next couple of years. In Brazil, seg-ments like Agricultural, Infrastructure and Energy are demanding a lot of investments, even in expansion as upgrading. And this investment flow is really happening. As an example, we can mentioned the Foreign Direct Investment in Brazil which only in 2012 reached the sum of US$ 65 billion (the 4th World Leader recipient of FDI). So, Brazil is no longer more the country of the future. The future is present and Bradesco is presence to support this.

BANCO BRADESCO IS THE SECOND LARGEST PRIVATE BANk IN BRAZIL (TOTAL ASSETS). IT IS PRESENT IN LuxEMBOuRG SINCE 2002 WITH A DYNAMIC TEAM.INTERVIEW WITH JEFFERSON MARCON AVELINO, SENIOR MANAGER, BANCO BRADESCO EuROPA.

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In WhAT WAYS hAS ThE BRAZILIAn MARkET BEcOME ATTRAcTIvE FOR LUxEMBOURG?Brazil is one of the strongest members of the BRICs and it has aimed to position itself as the place to be, not only for its growing and healthy market and sys-tem, but also because it represents the gateway for investors to the rest of Latin America. Bonn Steichen & Partners (BSP) has not only witnessed the growing interest from Brazilian investors and firms for Luxembourg but it has also supported and given con-crete expression to the desire from Luxembourg and European investors wishing to take part as first line actors in this Brazilian business success story.

ARE ThERE LEGAL OR FIScAL ISSUES ThAT EU InvESTORS LOOkInG InTO ThE BRAZILIAn MARkET ShOULD BE AWARE OF?As an interaction of the Roman, Spanish and Portuguese legal frameworks, the system governing business and trading in Brazil is complex. The com-bination of schemes with the Brazilian federal, state and municipal tax regimes appears difficult to appre-hend. This is why deals shall be made with the sup-port of skilled local professionals. Brazil’s high tax rate and cumbersome labor law also appear as poten-tial barriers to investment, hence the importance of structuring bi-national investments with Luxembourg to reduce this administrative burden.

WhAT ARE ThE MAIn AREAS OF cROSS BORDERS DEALS AnD InvESTMEnTS BETWEEn LUxEMBOURG AnD BRAZIL?In the past, we have participated to the financing of the Brazilian bank system through the so-called

Brady Bonds. Nowadays various schemes from and in Luxembourg are used by Brazilian and European investors to settle private equity, real estate and infrastructure investments with, more recently, a direct link with the organisation of the various sport events to happen in Brazil. Our investment funds department has also observed an increasing interest from Brazilian investors that contemplate to invest in their country through the use of Luxembourg investment schemes such as the SIFs, nonetheless one shall also take into account the growing interest coming from UCITS that are considering to pursue investments in Brazil. Recently, we have assisted European clients wishing to access the Brazilian market in relation to both the real estate and to the financial sector by taking advantage of the creation of joint ventures with local entrepreneurs.

hOW DO BSp DEALS WITh BRAZIL?BSP is a Luxembourg law firm that has been working for over 20 years to help customers thanks to its deep expertise in business law (corporate, banking, finance and investment funds). Through our success and active participation in publications and confer-ences in Europe but also in Brazil, we have developed productive professional relationships. Our independ-ence coupled with our successful cooperation with local firms allows BSP to tailor the projects of our clients to take the best advantage from both Luxembourg and Brazilian systems.

1. Bonn Steichen & partners is a Luxembourg law firm that has been working for over 20 years to help customers thanks to its deep expertise in business law (corporate, banking, finance and investment funds)

More inForMationwww.bsp.lu

INTERVIEW WITH LuC COuRTOIS, PARTNER, BONN STEICHEN & PARTNERS1.

A pARTnER TO cROSS-BORDERS DEALS AnD InvESTMEnTS

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LUc cOURTOIS, partnEr, Bonn stEiCHEn & partnErs.

In A FEW WORDS, WhAT IS ThE LUxEMBOURG-BRAZIL BUSInESS cOUncIL ASBL (LBBc)?We are one of the most structured reference plat-forms about Brazil in Luxembourg. We saw that Luxembourg is actually not well known in Brazil. We seek to promote Luxembourg in Brazilian mar-kets as a prime location for business. LBBC is a very comfortable way to begin a relation with Brazil.

WhAT BEnEFITS DO YOU BRInG TO YOUR MEMBERS?The main benefit for LBBC members is access. LBBC members can participate in our network during events and conferences. We provide oppor-tunities of interaction for people sharing same interests in the Luxembourg-Brazil relations.In different occasions we managed to get a sizeable attendance to the gatherings with amenities and folkloric music. Attendants were discussing busi-ness, asking very pertaining questions and getting positively surprised with realities about Brazil. We managed to bring a bit of the typical Brazilian informal tone without losing professionalism.

ThE EcOnOMY OF BRAZIL IS LARGER ThAn ThAT OF ThE Uk, SpAIn OR ITALY. WhAT InITIATIvES IS BRAZIL TAkInG TO “ExpORT” ITSELF TO ThE WORLD?The birth of Brazil was actually very humble. It was

marked by the beginning of our external debt. This long-term indebtedness was a stigma that Brazil dragged through history for several decades. That gave the country a less than perfect image world-wide. However, Brazil managed to pay his debts with the IMF and actually today it has several times more cash reserves than debt. Today, solvency is not an issue for Brazil.Brazil reversed this adverse situation through diplomacy. Whatever actions the government did, occurred in harmony with the international com-munity. This favorable situation has a positive moral effect in the citizens. The overall increase in self-esteem affects the stance of Brazil in negotiations. Brazil is gaining a lot of media projection with the World soccer cup in 2014 and the Olympic Games coming right after in 2016. These events attract capital, work and attention.

hOW cAn YOU EARn MOnEY WITh BRAZIL? Brazil is hiring qualified handcraft, experts and companies in all areas. LBBC always tries to pro-mote the Clusters initiative of Luxembourg. These are focal points of expertise within our borders. In some areas there are clearly very profitable market niches and they are necessarily linked with the growth the country is experiencing, for instance logistics, ICT, banking, airspace etc. Brazil is a welcoming country. Immigrants are a great part of its history.

ContaCtboechat@pt.luadministrator@luxbrazil.luwww.luxbrazil.lu

INTERVIEW WITH LAERTES BOECHAT, PRESIDENT AT BuSINESS COuNCIL LuxEMBOuRG & BRAZIL.

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ASSOcIATIOn

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pROMOTInG LUxEMBOURG In ThE BRAZILIAn MARkETS

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TESTIMOnY

Last year I had the opportunity to be in Luxembourg and I have to admit I was taken by surprise. I realized that its stra-tegic localization, and its relevant posi-

tion as a logistic cluster in Europe were indeed attractive to any Brazilian investor. As member of the European Union and headquarters of so many private and public institutions, it can become indeed a strong and effective bridge between South America and Europe. Luxembourg has plenty of financial & banking, but there is room for industries, services and new technologies. Banking is not the only advantage of Luxembourg. It is possible to improve the relationship between Universities, Companies and NGOs that add value for both countries in fields such as sustainability, well-ness and knowledge development. Its stability, multicultural environment, life quality and renown capacity of resilience are also some powerful advantages.

Brazil and Luxembourg have been institution-ally improving its bilateral business exchange and know-how in the last years. Why not to do

so in areas with potential growth such as Human Resources and Companies performances’ as well? Nowadays, a company needs to be struc-tured to meet the increasing demands of busi-ness management and human capital and to adapt to a highly competitive market using advanced techniques and methodologies that should focus on applicability. Brazilian manag-ers and its expertise in HR Models of Compensation, (incentives & productivity), are renown worldwide. Positions and salaries, meri-tocracy, compensation to sales force, incentive plans, management skills and systems for stra-tegic performance must all be interconnected. All this is essential to the high productivity and to the positive results of an organization, and it reflects deeply in its performance. Those are some of our values and good practices we are ready to share. The current opportunities of the actual conjuncture demands fast action, as Brazil is in the international agenda in the fol-lowing years. The open debate about the bilat-eral possibilities should start now. A good start, in the right timing, should change the whole course for our countries know-how exchange. ©

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pRODUcTIvITY AnD ThE BRAZILIAn knOW-hOW

CELso tHiEDE, tHiEDE ConsULting – sao paULo

cELSO ThIEDE, tHiEDE ConsULting.

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MUSIc

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it was in 1995 that Hamilton came into promi-nence on the Brazilian music scene and was considered the best interpreter in the II Choro Festival of Rio de Janeiro. In 2001 he received

the award for best instrumentalist in the categories classical and popular in the only edition of Icatu Hartford Arts. This recognition allowed him to live in Paris for a year. With the CD “10 1 byte strings,” he received the restricted title “CHOC,” from the most important European music publication, “Le Monde de la Musique”. He was awarded six times the Brazilian Music Awards, the most important national music award.He currently plays with his Trio, which in April launched a disc under the same title, with Thiago Serrinha on percussion and André Vasconcellos on bass, and, of course, its award-winning quintet Brasilianos composed by Daniel Santiago, André Vasconcellos and Gabriel Grossi. Marcio Bahia and Xande Figueiredo take turns on drums. “The Trio is a disc with Baroque aspirations, with extensive use of counterpoint melody,” explains Hamilton.

BS: How did the idea of adding two more strings to the traditional mandolin of four pairs of strings?

HH: “The idea came from a musical wish: to have more possibility in the use of polyphony; to be able to play the three elements of music - melody, har-mony and rhythm - at ease.”

BS: Your music is that of absolute “Brazilianity”. What is your secret?HH: “Work, dedication, attentive ear, (so many things…), family, friends, luck… I guess that sums up things already. To be accessible without losing the sophistication, the music needs to be as simple as a hug.”

BS: You are currently working on a project in honour of Pixinguinha (great teacher, creator of chorinho, internationally renowned Brazilian music style). Tell us some of that work.HH: “The essential idea is to play Pixinguinha with and through the lenses of foreign musicians, a vision of jazz greatest musicians. I have already recorded with Richard Galliano, Stefano Bollani, Omar Sosa, Chucho Valdés and Mario Laginha.”

Bernadete Berlot dos Santos

ThE UnIqUE vOIcE OF ThE MAnDOLIn OF hAMILTOn DE hOLAnDAA VERSATILE MuSICIAN, WHO WALkS WITH EASE AND WISDOM THROuGH STYLES SuCH AS CLASSICAL, JAZZ AND CHORINHO. A RESPECTED COMPOSER OF CONTEMPORARY BRAZILIAN MuSIC WHO IS kNOWN AS THE WORLD’S RE-INVENTOR OF MANDOLIN, BY ADDING TWO ExTRA STRINGS TO THE INSTRuMENT, WHOHAS RECEIVED TITLES IN MANY COuNTRIES FOR THE SPEED OF ITS SOLOS AND IMPROVISATIONS. WITH ALL THESE quALITIES, IS NOT BY CHANCE THAT THIS MuSICIAN MOVES THE HEART OF AuDIENCES WORLDWIDE. HIS INTERNATIONAL AGENDA IS ALWAYS BEING uPDATED ON THE WEB SITE “WWW.HAMILTONDEHOLANDA.COM” MR. DE HOLLANDA TOuRS REGuLARLY IN THE BENELux.

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To be accessible without losing the sophistication,Music needs to be as simple as a hug.Hamilton de Holanda

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cULTURE

hOW ThE IDEA OF FESTIvAL DU FILM BRéSILIEn - LUxEMBOURG cAME ABOUTTo a lot of people Brazil is samba, carnival and football. It was in part a matter of pride to chal-lenge prevailing stereotypes by showing that Brazil also produces quality cinema, which serves as a window on the amazing diversity of this country. In partnership with the film festival organization, Brasil Visual, we launched the first festival in 2011, and followed with twice as many films in 2012; in 2013, we are planning to project 8 films again. Some will be recent films and oth-ers a “best of” selection of art movies.

ThE MAIn chALLEnGES In ORGAnIZInG A FILM FESTIvALDespite being a not-for-profit event, sponsorship is a perennial issue for independent film festivals. In Luxembourg, access to private and public sec-tor decision makers is relatively easy, the chal-lenge is to present compelling arguments for funding cultural projects.

Our festival’s main aim is to showcase Brazilian cinema. Luxembourgers are true movie fans, who are drawn to film festivals. We also want to provide the opportunity for the lusophone public (the Portuguese, Cape Verdeans and Brazilians) to watch movies that they love. Our motto is to bring cultures together through art and emotion.

hOW TO BRIDGE ThE cULTURES OF BRAZIL AnD LUxEMBOURGThe challenge that we set ourselves is to show film goers how vast and varied Brazil is. This objective encounters an interested audience in Luxembourg, which is itself a multi-cultural country where communities retain ties to all parts of the world. Here we have the privilege of catering for a very outward looking audience.

For More inForMation about FestivaL Du FiLM brésiLienpieca.levy@festivaldufilmbresilien.luwww.festivaldufilmbresilien.lu ©

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DIvERSITYAnD BRAZILIAnESS

fEstivaL DU fiLM BrésiLiEn - LUxEMBoUrg

PIECA LEVY WAS BORN IN BELéM, IN THE AMAZONIAN STATE OF PARá (BRAZIL), BuT SHE IS A WORLD CITIZEN. OVER THE PAST 25 YEARS SHE HAS LIVED IN JAPAN, THE uSA, LuxEMBOuRG AND BELGIuM. SHE IS ACTIVELY INVOLVED WITH THE LuxEMBOuRG NGO ASTM (ACTION SOLIDARITé TIERS MONDE) WHERE SHE MANAGES DEVELOPMENT PROJECTS IN BRAZIL. HER PASSION, HOWEVER, IS CINEMA. FOR THE THIRD YEAR IN A ROW, PIECA WILL BE ORGANIZING THE FESTIVAL Du FILM BRéSILIEN – LuxEMBOuRG, 14TH - 21ST NOVEMBER 2013.

WhAT BROUGhT A FORMER TOp MODEL FROM cARDIn TO ThE TOUGh WORLD OF SOcIAL DEvELOpMEnT?It all started with building a Nursery “Heart of Geneva” in the slums of Vigario Geral in Rio, financed by friends, Swiss bankers and the City of Geneva. My motivation stems from a very strong belief that the only way to take the Favelas’ youth out of their cycle of violence is to give them an opportunity to get professionally trained and exercise a decent job. I myself overcame a cancer. I made a solemn vow that if I were to get out of it alive; I would dedicate all my remaining life to help the life of others.

hOW WOULD YOU DEScRIBE ThE OBjEcTIvES OF “cOMITé pELA vIDA” (cpv)?CPV gives an opportunity for the youth to stay away from the cycle of violence and restore their

dignity through vocational training in various professional areas. It does not only provides pro-fessional training, but also provides general edu-cation i.e. language skills, culture, health training and good communications. We teach both skills and self-esteem.

WhAT ARE ThE RAnGE OF vOcATIOnAL TRAInInG pROvIDED AnD ThE nEW SchOOLS BEInG OpEnED?The first vocational training provided by the CPV started in 1995 with a beauty shop. Since we received the support from the City of Rio de Janeiro, we went on to open up a Hotel manage-ment school, hair care school, training for recep-tionists and maids for private households. We have adapted the methods of the Lausanne Hotel School, and work in partnership with some of the best hotels in Rio, such as the Fasano Hotel, the Sheraton and Copacapana Palace. The job mar-ket for professional in catering and hotel is very good now. Our alumni get jobs quite easily.

WhAT IS YOUR MESSAGE TO LUxEMBOURG AnD ITS FInAncIAL cOMMUnITY?Open the window of your car and see for yourself. There are so many young girls and boys out there who maybe the next Paul Bocuse or Steve Jobs, but simply will never get to express this talent, because they lack access to basic education. This basic injustice is worth fighting for. I make mine the thought of the Dalai Lama: “Our courage needs to be stronger that the difficulties that we face”. This is worth it: seeing these hundreds of trained youngsters getting a better life is my “rai-son de vivre”.

MARIA BOuRGEOIS, A FORMER TOP MODEL FOR PIERRE CARDIN, HAS LEFT BEHIND THE LuxuRIOuS CATWALkS OF FASHION TO DEDICATE HERSELF WHOLEHEARTEDLY TO IMPROVING THE EDuCATION OF THE DESTITuTES IN RIO DE JANEIRO. IN THE MAkING SHE MANAGED TO BRING TOGETHER GENEVA BANkERS, THE BNDES, NGOS AND THE CITIES OF RIO AND GENEVA, TO CREATE VOCATIONAL SCHOOLS. VIVA MARIA!

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BUILDInG ThE FUTUREIn RIO’S FAvELAS

CoMMittEE for LifE (Cpv)

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STAY In TOUch WITh ThE FLAGSpIRIT®

www.flag.lu

nETWORkInG

EATInGUpScALEbouquet garni: www.lebouquetgarni.luClairefontaine: www.myofficialstory.com/clairefontaineFavaro: www.favaro.luLa rameaudière: www.larameaudiere.luLe Windsor: www.windsor.luLéa Linster: www.lealinster.luMa langue sourit: www.mls.luMosconi: www.mosconi.lu

cASUALbrasserie Mansfeld: www.mansfeld.lu brasserie schuman: www.myofficialstory.com/brasserieschumanboos K Fé: www.boos.luikki: www.ikki.luum Plateau: www.myofficialstory.com/umplateau

SpEcIALITIESburger: Le booster’s: www.booster.luitalian: voglia Matta: Tel.: (+352) 26 48 20 98indian: Maharaja: Tel.: (+352) 24 17 45asian: opium: Tel.: (+352) 26 360 160 sushi: Yamayu santatsu Tel.: (+352) 46 12 49

cIGARLa tabatière: www.la-tabatiere.lu

LEASUREcASTLES beaufort: 24 rue du château, L-6310 Beaufort

bourglinster: 8 rue du château, L-6162 BourglinsterClervaux: Am Schlass, L-9774 urspeltvallée des sept châteaux: Leesbach, L-8363 SeptfontainesLarochette: 4 rue de Medernach, L-7619 Larochette

cULTUREMudam: 3 Park drai Eechelen 1499, Luxembourg www.myofficialstory.com/mudamPhilharmonie: Place de l’Europe L-1499, LuxembourgCasemates: 30, place Guillaume ii, LuxembourgPalais Grand ducal: 17 rue du marché-aux-herbes, Luxembourg

pARTYrives de Clausen: www.myofficialstory.com/rivesdeclausenbypass: www.bypass.luWhite House: www.white.lu

hOTELSsofitel Grand Ducal: www.myofficialstory.com/sofitelHotel Le royal: www.hotelroyal.luLe Place d’armes: www.hotel-leplacedarmes.comMelia: www.melia-luxembourg.comalbert 1er: www.albert1er.lu

cEOS’ FAvouriTE AddrESSES

Clairefontaine. Um plateau. Bourglinster. sofitel grand Ducal.

www.luxembourgofficial.com

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