Celina Leão requests federal approval for R$6.6 billion BRB loan

Federal District Governor Celina Leão (PP) sent an official request on Tuesday (April 28) to the National Treasury seeking Union guarantee for a R$6.6 billion loan to BRB, a bank in crisis due to operations with Banco Master. The move aims to restore the institution's solvency and liquidity, controlled by the DF government.

Governor Celina Leão formalized the request to Finance Minister Dario Durigan, stressing that the operation has a "one-off and non-recurring nature", linked to events like the liquidation of Daniel Vorcaro's Banco Master conglomerate. These operations caused losses at BRB, straining its liquidity and prudential indicators.

In the letter, Leão argued that recapitalization prevents fiscal risks to the Federal District and mitigates impacts on the regional financial system. The previous government under Ibaneis Rocha requested R$4 billion from FGC; the current administration seeks an additional R$2.6 billion.

At an event on Tuesday morning, Celina stated: "It's a formal gesture, but we expect it to be approved by the president too. I'm sure we will be attended to." She requested a meeting with President Lula on Thursday (30), accompanied by BRB President Nelson Antônio de Souza and Secretary Valdivino José de Oliveira.

As a gesture to the federal government, Leão sent a bill to CLDF authorizing DF's adhesion to MP 1.349, which subsidizes diesel with R$0.60 per liter from DF and the Union, totaling R$1.20, to curb price rises amid the war in Iran. The estimated impact is R$11.6 million.

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DF Legislative Assembly chamber during vote approving BRB capitalization bill with properties and R$6.6B loans.
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DF Assembly approves bill to capitalize BRB

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The Legislative Assembly of the Federal District approved, by 14 votes to 10 in two rounds, the bill authorizing the DF Government to capitalize the Bank of Brasília (BRB) with nine public properties and loans of up to R$ 6.6 billion. The measure aims to cover losses related to operations with Banco Master. The text now goes to Governor Ibaneis Rocha for sanction.

Brazil's Banco de Brasília (BRB) is considering accessing liquidity lines (LFL) from the Central Bank to address cash shortages from the Banco Master crisis. Anonymous sources say the bank is negotiating to use its credit portfolios as collateral, potentially unlocking R$ 300 million. This comes amid R$ 12.2 billion losses from fraudulent operations.

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The Bank of Brasília (BRB) plans to deliver a capital plan to the Central Bank by this Friday (6) to address losses from the alleged fraud in credit portfolios acquired from Banco Master. The plan includes options such as creating a real estate investment fund, a loan from the Credit Guarantee Fund (FGC), and capital injection from the Federal District Government. Meanwhile, the BRB president is set to meet with district deputies to explain the crisis's impact.

Banco Master, owned by Daniel Vorcaro, transferred R$ 27.2 million to the Metrópoles portal, owned by Luiz Estevão, from 2024 to 2025 during talks to sell to BRB. Coaf reports flag possible irregularities in the payments, with rapid transfers to companies linked to the former senator. Estevão claims the amounts were for football sponsorships and advertising campaigns.

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The Supreme Federal Court released depositions in the Banco Master inquiry, revealing serious irregularities such as only R$ 4 million in cash despite R$ 80 billion in assets. Meanwhile, INSS blocked R$ 2 billion in payments due to unproven loan contracts, and the Credit Guarantee Fund continues reimbursements to investors.

Banco do Brasil disclosed a 45.4% drop in adjusted net profit for 2025, totaling R$ 20.7 billion, affected by new accounting rules and rising default rates. In the fourth quarter, profit reached R$ 5.7 billion, down about 45% to 47% year-over-year. The bank forecasts recovery in 2026, with profit between R$ 22 billion and R$ 26 billion.

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Brazil's Monetary Council (CMN) approved new rules for the Credit Guarantor Fund (FGC), requiring banks with excessive FGC-backed fundraising to invest part of the funds in federal public bonds. The measures aim to mitigate moral hazard and strengthen liquidity, effective from June 1, 2026. Liquidity requirements were also expanded to mid-sized banks.

 

 

 

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