Banco de Brasília capitalization negotiations continue at STF

A mediation hearing at the Supremo Tribunal Federal (STF), led by Minister Luiz Fux, aimed to resolve the impasse regarding a R$ 6.6 billion loan to capitalize the Banco de Brasília (BRB). The meeting concluded without concrete progress, though all parties agreed to continue negotiations.

The crisis at BRB stems from financial losses linked to operations with Banco Master, with the bank estimating approximately R$ 8.8 billion in non-recoverable or fraudulent credits. The proposed solution involves the Distrito Federal (DF) contracting a loan from the Fundo Garantidor de Créditos (FGC), with banks acting as guarantors.

Key obstacles include legal uncertainty regarding the use of federal funds (FPE and FPM) as collateral in case of default by the DF government. Additionally, the FGC has requested BRB’s 2025 and 2026 financial statements to evaluate the request, a requirement the DF Governor, Celina Leão, argues can only be met after the bank is capitalized.

While the DF government seeks to secure the funds to prevent bank liquidation, federal authorities and the FGC maintain that rigorous financial assessments and clear guarantee structures are mandatory before the credit is released.