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Foreign investment enterprises in the project finance field must now seek the same foreign exchange authorizations as domestic entities. By Edward Turner and Edward Lam of Shearman & Sterling, Hong Kong and London

The Czech government is beginning the slow process of rebuilding investor confidence. Further banking and funds reforms are planned. By Madle Waldvogel of Beiten Burkhardt Mittl & Wegener, Prague

Colombian companies are increasingly looking forward to expanding their capacity into new markets and increasing their local capacity. The merger of companies is a useful instrument to enhance this capacity.

Nearly 75% of the voting capital, corresponding to about 30% of the total capital of Eletropaulo Metropolina was sold at auction for about US$1.8 billion on April 15. Eletropaulo Metropolina was the largest of the two distribution networks of Eletropaulo which, in turn, was the largest distributor of electricity in Latin America. The participation was acquired by Light, already a distributor of electricity in Rio de Janeiro, controlled by a consortium formed by Companhia Siderúgica Nacional, the American companies Huston and AES and the French company EDF.

On March 1 1998, the amendments to the 1989 EU Merger Regulation entered into force. For the details of the new regime see International Financial Law Review, June 1997, page 53.

Under Swiss law, domestic investment funds, including hedge funds, are to be organized either as investment companies or multiple investors' contracts. Multiple investors' contracts will be governed by the Swiss Law on Investment Funds, while investment companies are subject to the Swiss Company Law, which is part of the Swiss Code of Obligations. If investment companies are listed on the Swiss Stock Exchange, they will also be subject to the listing rules of the stock exchange.

The law of the country where a bank account is kept will usually govern the banker-customer contract. However, the law of another country may affect the account.

Spain recently approved rules to reduce the risks derived from the insolvency of any of the parties involved in financial operations in relation to derivative instruments. In the event of the accelerated maturity of the balances resulting from these operations, the netting of the balances is now allowed.

On December 11 1997, the ordinary shareholders' meeting of Borsa Italiana SpA, the company to which the organization and management of the Italian regulated markets of financial instruments has been attributed, adopted the regulation aimed at governing the markets, so implementing Article 47 of Legislative Decree No. 415 of July 23 1996.

On October 3 1997 a new Public Trading in Securities Act was published, which took effect on January 4 1998. The Act replaces the Securities Trading Act of 1991. The new Act provides, among other things, for a more detailed regulation of the field of derivatives transactions.