The Federal District government ended 2025 with a R$1 billion shortfall in its cash reserves, complicating financial support for the Banco de Brasília (BRB). The state-owned bank faces losses from suspected fraudulent operations with Banco Master, under federal police investigation. Experts say Union assistance will likely be unavoidable to resolve the crisis.
The Federal District government recorded a R$1 billion deficit in its cash at the end of 2025, a financial fragility that now prevents immediate capitalization of the BRB, controlled by the DF. The state-owned bank needs funds to cover losses from operations with Banco Master, under federal police investigation for suspected fraud.
Data declared by the DF to the National Treasury shows free cash negative at R$876.6 million, with an additional R$143.6 million shortfall in the civil servants' pension fund. Linked resources totaled R$1.59 billion positive but cannot be reallocated due to specific purposes. This setup, known as 'caixa virado,' reflects obligations taken on exceeding available resources, including unpaid expenses carried over to 2026.
Additionally, prior year expenses exceed R$1 billion since 2023, representing spending above what was authorized in the budget by the DF Legislative Assembly. Governor Ibaneis Rocha (MDB), who plans to run for the Senate, avoids seeking federal aid from Luiz Inácio Lula da Silva's (PT) government, creating a political impasse.
An assessment given to Folha by a member of the economic team and financial institution executives indicates Union help will be unavoidable. Private banks refuse to finance the DF without federal guarantees, requiring an exception from the Finance Ministry. To date, the district government has not formally requested assistance.
The BRB may need up to R$5 billion, according to the Central Bank, or more per interlocutors. On Tuesday (24), the DF presented a bill for credit operations up to R$6.6 billion. Efforts include selling real estate, capitalizing with assets, or negotiating credit portfolios, but Caixa Econômica Federal is conducting due diligence without confirmed purchases. Federal public banks have not received authorization to assist.
Despite billion-dollar transfers via the DF Constitutional Fund — R$25.7 billion in 2025 and over R$28 billion in 2026 —, delays in hospital payments led to bed closures. An aide to Minister Fernando Haddad compared the case to the past financial collapse of Rio de Janeiro. The DF government, Finance Ministry, and BRB did not respond to the report's inquiries.
