Brazilian Capital District approves R$6.6 bn loan to rescue Banco de Brasília (BRB)

The Government of the Distrito Federal (DF) and the Federal Supreme Court (STF) have agreed on a financial rescue plan for the state‑controlled Banco de Brasília (BRB). An emergency bill was approved by the DF Chamber of Deputies with 11 votes in favour, 9 against and one abstention, authorising a loan of up to R$ 6.6 billion from the Fundo Garantidor de Créditos (FGC). The loan will be secured with the DF’s participation funds (FPE and FPM) and does not carry a guarantee from the national treasury.

The rescue is needed because BRB faces an estimated R$ 8.8 billion loss linked to fraudulent transactions with Banco Master, which involved about R$ 30 billion of dubious titles. BRB’s president, Nelson Antônio de Souza, said the bank is the main provider of mortgage financing in the capital (about 64 % of the market) and its collapse would threaten public‑service funding and employment. The loan terms include an 18‑month grace period and interest tied to the IPCA inflation index plus 4.5 % a year; the DF plans to complement the funding through securitisation of its own debt.

The measure aims to stabilise BRB’s balance sheet, protect thousands of jobs and preserve the bank’s role in the regional economy while the DF seeks to recover part of the loss through ongoing investigations and asset recoveries.