Without BRB, pension funds and public bank at risk of defaulting up to R$ 3 billion from Master

BRASILIA AND SAO PAULO – The rejection by the Central Bank of the Banco de Brasília’s operation to buy part of Banco Master will leave pension funds and at least one state-owned bank at risk of non-payment by Master. These institutions – at least 13 identified by Estadão/Broadcast – have invested in Master’s financial notes, which are not guaranteed by the Credit Guarantee Fund (FGC). Estadão/Broadcast identified 12 pension funds and one public bank holding Master’s financial notes, totaling R$ 1.81 billion at issuance value, with another R$ 1.14 billion from other buyers. RioPrevidência, a pension fund linked to the government of Rio de Janeiro, invested R$ 970 million in Master’s financial notes, representing around 8% of the entity’s assets. Amapá Previdência, managing the State of Amapá’s Social Security System, invested an additional R$ 400 million.