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On July 29 1998 the sale of Brazil's giant telecoms company, Telebrás, raised R$22 billion (US$19 billion), between U$4 billion and U$5 billion more than expected in the financial markets and representing a premium of 63.74% over the minimum price. The sale demonstrated the enthusiasm that multinational companies have for Latin America, and confirmed that international companies are willing to commit large resources into the emerging markets.

In Resolution 658E of June 25 1998, the Central Bank of Chile amended the Compendium of Foreign Exchange Regulations of the Central Bank by reducing from 30% to 10% the mandatory deposit requirement or Encaje on foreign exchange brought into Chile as investments, loans or capital contributions.

On January 31 1998, the Promotion of Investments Law became effective with the aim of promoting domestic and inward investment. The equality of inward investment with domestic investments is now guaranteed by the government which takes responsibility for damages and ensures the free transfer of capital and profits (free convertibility is permitted by law).

In the wake of Asia's financial crisis, continuing speculation on a Renminbi devaluation appears to have triggered an outflow of foreign currency from China.

The Monetary Authority of Singapore (MAS) has announced that share buybacks will be made legal by the fourth quarter of 1998, following feedback from industry bodies and financial market participants. Companies will be permitted to repurchase shares on the market in round lots out of distributable profits at any time within the period mandated by shareholders. The proposed legislation, which will complement the provisions permitting capital reduction in the Singapore Companies Act, will provide appropriate safeguards to ensure that creditors' interests are preserved and to minimize abuse, while providing sufficient flexibility to companies.

In August 1998, the Austrian Legislature adopted for the first time a Takeover Code. Changes have been made to the draft prepared by the ministry of justice (see International Financial Law Review, June 1997, page 60).

The ministry of finance is preparing a government Bill containing proposed amendments to the Act on Investment Funds. The aim is for the Bill to be ratified and become effective by the end of this year.

A recent decision of the Copenhagen City Court confirms that Danish courts take a strict view on insider trading (see International Financial Law Review, March 1997, page 58). A board member of a Danish company was sentenced to five months' imprisonment plus confiscation of about US$100,000 of profit.

The recent merger of the German Futures Exchange DTB (Deutsche Terminbörse) and the Swiss Futures Exchange SOFFEX (Swiss Options and Financial Futures Exchange) created EUREX (European Exchange) as a single platform for pan-European trading and clearing of standardized futures and options under harmonized rules. EUREX is a fully electronic exchange based in Frankfurt and Zurich, with access points in Amsterdam, Chicago, London and Paris (and future access points in Helsinki, Madrid and New York).

Act No. CXII/1996 on credit institutions and financial enterprises permits the setting up of a centralized domestic electronic database. The passing on and/or accessing of database information on debtors by financial institutions and investment companies does not constitute a violation of banking secrecy. However, this database should not contain information on natural persons. The Act was amended with effect from January 1 1998; it is now permissible to store and provide information on natural persons. The difference between data on private persons and data on non-private persons is that information on private persons is limited to a 'blacklist', ie only those debtors are recorded who have not met their obligations within 90 days of the due date. On the other hand, debtors who are non-private persons are always registered as soon as they conclude a loan or quasi-loan agreement, irrespective of whether they are in default of payment.