BRB was the most defrauded company in the Master framework, says bank president

The president of Banco de Brasília (BRB), Nelson Antônio de Souza, stated this Tuesday (9) that the public bank was the "most defrauded" in the scandal involving the Master bank.

"It's the biggest, it was the most defrauded company of all," he declared, during a hearing before the Senate's Economic Affairs Committee (CAE) to explain the operations between BRB and Master bank.

Souza reaffirmed that the public bank has taken restructuring measures, but admitted that the institution's recovery will not be easy. However, he said he considers that BRB is capable of continuing to operate.

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"Our arrival was precisely so that there would be no liquidation in the BRB. And the BRB has the structural conditions to remain standing in a solid manner", he said.

The president of BRB repeated that the bank's necessary provision is R$8.8 billion and that this provision will be made with a loan from the Credit Guarantee Fund (FGC), with securitization of the Federal District's debt.

Souza said that BRB holds 64% of the Brasília market, which corresponds to a portfolio of almost R$15 billion, and that a liquidation would affect the capital. "I want to say that the Banco de Brasília disappearing, (...) is not a problem for deposits, it is a problem for the whole of Brasília and all the places where BRB is present", he said.

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The Senate's CAE has a working group to oversee investigations into Master's fraud.

Loan terms may change
At the hearing, Nelson Antônio de Souza reaffirmed that he sees survival conditions for the public bank, but that the terms of the loan intended by the institution may change.

"Does it have the means to survive and how will it survive? If it didn't, there's no reason for us to be wasting our time here. It wouldn't make sense. How much is this loan, under the conditions we suggested for the loan? That doesn't mean it's going to be that, especially because whoever is going to lend it says how much it is. But we asked for a loan of R$6.6 billion", he declared, during the hearing to the Senate's CAE.

Crisis at BRB makes funding difficult and worries the financial market | MONEY REVIEW

Souza defended the loan and said that the grace period will make payment easier. "In 2027, in 2028, when we start paying the loan, we will have over R$1 billion in profit," he said.

Source: CNN