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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Dramatic illustration of former BRB president Paulo Henrique Costa's arrest by Federal Police over a R$146 million property bribery scheme.
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Ex-BRB president arrested over R$146 million property bribe

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Federal Police arrested Paulo Henrique Costa, former Banco de Brasília (BRB) president, on Thursday (16) over a bribery scheme tied to Banco Master. This follows earlier investigation revelations, including a note suggesting Costa's efforts to save the bank through credit portfolio purchases amid potential R$5 billion losses for BRB. Costa allegedly received six properties worth R$146.5 million from Daniel Vorcaro to conceal irregularities. The arrest, authorized by STF's André Mendonça, led to transfer to Papuda prison.

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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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.

Rio de Janeiro's acting governor Ricardo Couto met with the finance minister in Brasília on Monday to discuss the state's adhesion to Propag.

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Deputy Adriana Ventura submitted a request to the finance minister seeking details on the recently launched Desenrola Brasil 2.0. The lawmaker questions the outcomes of the original 2023 version.

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