By Brazil Stock Guide – Brazil’s credit guarantee fund extended a R$4 billion ($680 million) emergency credit line to Banco Master for another 45 days, giving the lender controlled by Daniel Vorcaro critical time to move ahead with a restructuring.
The rollover, reported by O Globo columnist Lauro Jardim, comes just as Master paid about R$200 million in maturing certificates of deposit. The extension is the second since May, when the FGC initially offered the support to the bank.
Vorcaro has been seeking to stabilize the group by selling assets and restructuring liabilities. He recently completed the sale of insurer Kovr and hired Laplace to advise on the overhaul, including the potential disposal of Will Bank. A successful sale of Will could raise cash while shedding R$6.9 billion in liabilities, sharply reducing the exposure that the FGC would face in a potential rescue.
Since March, when Master announced — and later lost approval for — a deal with Banco de Brasília (BRB), the lender is said to have already honored nearly R$10 billion in debt. In its year-end 2024 financial statements, the group disclosed R$16.07 billion in liabilities maturing in 2025, of which R$7.66 billion fell due in the first half.
The bank has yet to release results for the first half of this year, even though the reporting deadline expired on Sept. 30.