Durigan opens dialogue with GDF on BRB situation

Finance Minister Dario Durigan said he is willing to dialogue with the Federal District Government about Banco de Brasília, which is involved in buying bad credits from Banco Master.

Durigan explained that the federal government was not approached by the GDF until the inauguration of new governor Celina Leão. He mentioned calling the governor to discuss ICMS reduction on fuels, at which time she requested a meeting on the BRB.

The Federal District lacks Payment Capacity to contract loans with National Treasury guarantee, blocking negotiations with other banks. Treasury Secretary Daniel Leal indicated that only Capag A and B allow credit with Union guarantee, requiring a normative change.

Durigan said he is not closed to dialogue and seeks a solution beneficial to the country. The GDF sent a request for analysis, but new documents were requested.

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A courtroom scene depicting the rejection of a plea deal by Prosecutor General Paulo Gonet involving former BRB president Paulo Henrique Costa.
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PGR rejects plea deal proposal from former BRB president

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Prosecutor General Paulo Gonet rejected the plea deal proposal submitted by the defense of Paulo Henrique Costa, former president of Banco de Brasília.

After a meeting at the STF on Tuesday, Finance Minister Dario Durigan announced that the Union will relax the Federal District’s credit limit to enable a loan of up to R$ 6.6 billion to BRB from the FGC.

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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.

President Luiz Inácio Lula da Silva's government plans a new credit package allowing renegotiated debts to be paid over up to four years. The program, tentatively called Desenrola 2, covers credit cards, overdrafts and non-payroll personal loans. The announcement is expected by month's end.

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São Paulo governor Tarcísio de Freitas said Fernando Haddad was the best finance minister in Paraguay's history due to Brazil's high tax burden.

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