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BRB negotiates funding in Dubai to meet Central Bank requirements, rules out privatization

Bank directors are under investigation by the Federal Police/Archive/NeoFed
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The BRB is seeking to raise up to R$ 6 billion in Dubai to replenish its cash reserves and comply with Central Bank regulations, completely ruling out privatization.

In search of financial alternatives to restructure its equity, BRB (Banco de Brasília) has intensified negotiations abroad to raise funds without relying on privatization.

The bank’s executive board traveled to Dubai to negotiate investments of up to R$ 6 billion with funds from the United Arab Emirates to meet requirements stipulated by the Central Bank.

The need for capitalization stems from losses estimated at up to R$ 8.8 billion, compounded by operations linked to Banco Master and delays in audited financial statements.

International coordination and institutional support

Led by CEO Nelson Antônio de Souza, the delegation sought international support following obstacles in obtaining direct guarantees from the Federal Government.

In parallel, the GDF (Government of the Federal District) structured a plan under the mediation of the STF (Supreme Federal Court) involving the FGC (Credit Guarantee Fund).

The rescue model provides for an injection of up to R$ 6.5 billion led by a consortium with Banco do Brasil and Caixa Econômica Federal.

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The privatization of the bank is off the table, with ownership remaining under the management of the Government of the Federal District.

Fiscal adjustment and legislative processing

As a counterpart to the financial aid and operational guarantees, the district government has committed to implementing strict public spending containment measures.

The fiscal adjustment package includes limits on salary adjustments and a freeze on new public entrance exams in the Federal District over the coming years.

The credit authorization bill is currently being processed by the CLDF (Legislative Chamber of the Federal District), while BRB has already amended its internal regulations to allow for new capital injections.

The final consolidation of this model depends on the technical assessment of audits and final approval of the plan by the FGC, which are decisive steps to restore the institution’s stability.

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