BrazilDownload Full Scorecard
Goal – A well developed and transparent financial system that includes strong supporting institutions and highly trained and ethical professionals that contribute to effective financial intermediation and deep and broad access to capital and financial services
Core Question: Are market risks sufficiently transparent and diversified so that efficient capital allocation can occur? Yes – Strong, the global financial crisis impact has been moderate and the financial services sector has seen rapid growth.
5.1.1 What is the strength of the country’s auditing and reporting standards? Strong – 42nd out of 144; Score 5.1 out of 7
5.1.2 Are a wide variety of financial services and products available? Very Strong – 26th out of 144; Score 5.5 out of 7
Source: The Global Competitiveness Report 2012-2013, World Economic Forum
Weak – Ranking – 143rd out of 183 Trend ↓
5.1.3 What is the average time to complete bankruptcy proceedings? 4 years
5.1.4 What is the cost of bankruptcy proceedings as a percentage of the estate? 12%
5.1.5 What is the recovery rate of bankruptcy proceedings? 15.9 cents on the dollar
Source: Doing Business 2013 – Closing a Business www.doingbusiness.org/data/exploreeconomies/brazil
Core Question: Do trained, independent and ethical asset valuers exist for all types of assets? No – Weak, the profession is still dominated by engineers.
SQ 17 How easy is it to find a valuer who implements International Valuation Standards? – Weak – 64 companies listed as of 2007, standards still focus on the replacement cost approach.
Civil Society Resource: International Valuation Standards Council www.ivsc.org
SQ 18 What is the level of training of valuers? Weak – while the level of training is high, it lacks focus on Generally Accepted Valuation Principals (3 approaches)
Civil Society Resource: Appraisal Institute http://www.appraisalinstitute.org/
Core Question: Is accurate property information available electronically in formats that are consistent with international standards? Yes – Strong, although accurate sales data is not publicly available.
Sales & Operating Data
SQ 20 A multiple listing service is an electronic exchange system where brokers and agents can widely share contracted real estate listings of properties that are for sale. Do multiple listing type services exist? No – Weak, data quality and exclusive listings are lacking.
Civil Society Resource: International Consortium of Real Estate Associations www.worldproperties.com
SQ 21 Do resources exist for obtaining building income and expense estimates? Yes – Strong
Civil Society Resource: SECOVI www.secovi.com.br/
SQ 22 Do electronic data interchange formats conform to international standards (ebXML – electronic business using extensive markup language)? No – Weak
Civil Society Resource: Open Standards Consortium for Real Estate International www.oscre.org
SQ 23 Do building codes and office building measurement standards (ANSI/BOMA Z65.1) conform to international standards? Yes – Strong
Civil Society Resource: Associacã Brasileira do Mercado Imobiliario (ABMI) www.abmi.org.br
FQ25. How many independent valuers exist in the market? Can small businesses obtain fair valuations for property they want to buy or sell?
FQ26. What are the valuation standards and do they conform to international and regional standards?
FQ27. What valuation methods and techniques are used in the market?
FQ28. How available is information for commercial properties that are for sale or that have sold?