The Credit Guarantee Fund (FGC) has announced that it has paid R$ 37.2 billion in guarantees to creditors of the Master conglomerate, which corresponds to 92% of the total amount owed. As of Wednesday morning, approximately 653,000 individual creditors have received their payments, amounting to 84% of all creditors. The payment process is ongoing through the FGC app for creditors of Banco Master, Banco Master de Investimentos, and Letsbank.

The liquidation of Banco Master was declared by the Central Bank in November of the previous year due to its financial instability. The bank had been operating under the threat of bankruptcy due to high funding costs and exposure to risky investments with interest rates significantly above the market average. Efforts to sell the bank, including a proposal from Banco de Brasília (BRB), have stalled due to challenges from regulatory bodies and other issues, leading to the halt of potential sales.

This situation highlights the challenges faced by financial institutions in Brazil, particularly those with high-risk investment portfolios and unsustainable operational costs. As the FGC continues to pay out guarantees, the focus is likely to remain on ensuring the protection of depositors while addressing the underlying issues that led to the bank's collapse in the first place.