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[BUSINESS] · Brazil · 25 sources

started · updated

Banco de Brasília crisis as R$6.6 bn rescue plan unfolds

Finance Minister Dario Durigan said the Banco de Brasília (BRB) transferred roughly R$12 billion to Banco Master for assets that were essentially worthless, calling the transaction a crime. The bank’s balance sheet shows a shortfall of at least R$12 billion after buying doubtful assets from Banco Master; it has provisioned R$8.8 billion of those assets and its equity is now negative, around R$4 billion.

The Federal District, the controlling shareholder, secured a Supreme Court‑approved rescue package of up to R$6.6 billion through the Credit Guarantee Fund (FGC), with an additional R$2.2 billion of district funds pending. The loan requires guarantees from Caixa Econômica Federal and Banco do Brasil. BRB has denied requesting an extension for its delayed financial statements and says it maintains a technical, transparent dialogue with the Central Bank.

Central Bank governor Gabriel Galípolo met BRB president Nelson de Souza on 27 May to discuss the loan and the bank’s ongoing restructuring. The Supreme Court also authorized international tracing of assets linked to former Banco Master controller Daniel Vorcaro, including a R$500 million yacht, as part of the fraud investigation. Vorcaro has abandoned a third plea‑bargaining attempt and continues his defence with lawyer Sérgio Leonardo.

Entities

Argentina · Banco Central de la República Argentina · Banco Master · Banco de Brasília (BRB) · Daniel Vorcaro · Darío Durigan · Federal District Government · Gabriel Galípolo · Javier Milei · Kristalina Georgieva · Nelson Antônio de Souza · Nelson de Souza

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Sources

about 2 months ago
about 1 month ago