STF Clears Path for R$6.6 Billion FGC Loan to Rescue Banco de Brasília

Overview

• The Supreme Court homologated a conciliation that lets the Distrito Federal pursue a roughly R$6.6 billion loan from the privately funded Fundo Garantidor de Créditos with guarantees from a syndicate of banks.
• The loan is part of a wider R$8.8 billion recapitalization plan for BRB that already includes about R$1 billion from securitization and aims to mobilize further securitized resources.
• BRB postponed publication of its 2025 audited financials to incorporate the agreement and complete outstanding audits, and now expects to release audited balances by June 30, 2026.
• Release of FGC funds still depends on internal approval by the FGC, final loan terms and pricing, completion of audits tied to the Banco Master case, and fulfillment of technical conditions and plan-of-business requirements.
• The rescue responds to large losses from operations with Banco Master—BRB injected R$16.7 billion and federal investigators say at least R$12.2 billion show signs of irregularity—and the deal aims to restore market confidence through staged homologations and bank guarantees.