Brazil's Distrito Federal moves to fund BRB with 6.6 bn loan guarantee

The Government of the Distrito Federal (GDF) is preparing to raise up to R$ 6.6 billion through the Credit Guarantee Fund (FGC) to recapitalize the Banco de Brasília (BRB). The proposal, championed by Governor Celina Leão, would obligate the GDF to cover the loan’s interest—estimated at around R$ 50 million per month for 15 years—by using its shares in the State and Municipal Participation Funds as collateral.

Legislative scrutiny has delayed the vote on the bill that would formalize the arrangement; the Câmara Legislativa do Distrito Federal has postponed the decision to a later session. Proponents argue the measure is needed to meet a Supreme Court‑mandated agreement and to secure guarantees from major banks, while critics warn that the debt could strain the district’s finances, potentially adding up to R$ 9 billion in deficits by 2026.