The Bank of Brasília (BRB) delivered this Friday (6) to the Central Bank (BC) the Capital Plan with measures to rebuild the balance sheet and reinforce the institution’s liquidity within a maximum period of 180 days.
The document was presented personally by the bank’s president, Nelson Antônio de Souza, to the BC’s Director of Inspection, Gilneu Vivan. The Secretary of Economy of the Federal District, Daniel Izaias, also attended the meeting.
According to BRB, the plan brings together preventive actions that will be implemented if the need for input from the government of the Federal District (GDF) is proven, which will depend on the conclusion of ongoing investigations.
The bank states that the initiative seeks to guarantee the sustainability of the institution, preserve the stability of operations and ensure transparency for customers, investors and partners.
In an official statement, BRB did not mention values.
However, in a statement to the Federal Police at the end of last year, the BC’s Director of Inspection, Ailton de Aquino, said that the operations with Banco Master caused a loss of R$5 billion in the BRB’s balance sheet.
The bank did not detail the actions presented to the BC. It only stated that the plan protects BRB customers and guarantees the functioning of the institution.
“Elaborated to guarantee the sustainability of the institution, the plan strengthens institutional capital and ensures the stability of operations. The bank reaffirms its commitment to transparency, to the protection of customers, investors and partners, and to the adoption of all necessary measures to preserve the integrity and continuity of its activities”, the BRB note limited itself to informing.
In theory, BRB has five possibilities to raise capital:
- Loans from other financial institutions, including private banks and the Credit Guarantee Fund (FGC);
- Sale of assets, with emphasis on real estate portfolios and credits to states and municipalities;
- Creation of a real estate fund with GDF land and properties to be transferred to the bank;
- Direct contributions from the Treasury of the Federal District;
- Loan from GDF with FGC, with subsequent transfer to BRB.
Measures involving resources from the district government depend on approval by the Legislative Chamber of the Federal District. The plan aims to inject liquidity, reduce the size of the institution and reduce the need for new contributions from the controller in a context of fiscal restrictions.
According to the newspaper The State of S.Paulothe district bank would have sold around R$5 billion in high-quality assets – such as payroll loans and advance withdrawals from the Guarantee Fund – to contain capital flight following the liquidation of Banco Master and the progress of investigations into operations considered irregular.
The newspaper also reported that BRB is negotiating the sale of almost R$1 billion in credit portfolios granted to states and municipalities, with guarantees from the National Treasury, an operation that could yield around R$730 million in present value. The bank also tries to get rid of investment funds acquired from Banco Master itself.
The ongoing investigations investigate the purchase by BRB of around R$12.2 billion in Master’s credit portfolios, with overpriced or non-existent assets. Of this total, BRB states that approximately R$ 10 billion were replaced or liquidated and the blocking of assets was denied.
