Opposition Files Constitutional Challenge to DF Law Backing BRB Rescue

Overview

• The PSB, PSOL and PT regional diretórios filed an Ação Direta de Inconstitucionalidade at the TJDFT on Wednesday asking the court to suspend Lei 7.914/2026 and declare it unconstitutional.
• The district law authorizes a roughly R$6.5–6.6 billion loan through the Fundo Garantidor de Créditos with private-bank guarantees and irrevocable linkage of FPE/FPM transfers and other contragarantias to secure repayment.
• BRB management says the bank needs about R$8.8 billion while private banks remain hesitant to join the rescue, leaving the planned FGC transaction incomplete and GDF negotiations ongoing.
• The Tribunal de Contas do Distrito Federal is formally analysing the operation and has requested written inputs from the Casa Civil and BRB before issuing a fiscal legality opinion.
• If implemented, the law forces fiscal restraints such as salary freezes and suspension of new mandatory spending until repayment or an 'A+' Capag rating, which critics say could reduce funding for health, education, security and threaten thousands of BRB jobs.