On Tuesday, the government of the Federal District in Brazil indicated that the Bank of Brasília (BRB) could require loans amounting to R$ 6.6 billion to address significant financial deficits resulting from unsuccessful transactions with Banco Master. This substantial loan requirement is part of a new legislative proposal sent to the Legislative Chamber of the Federal District, which suggests using public real estate as collateral to secure these loans.

The recent legislative proposal follows a previous version submitted on September 20, which contained 12 lots of public properties, including portions of the Parque do Guará and green areas near the Papuda Penitentiary Complex. However, the latest proposal has been revised to include only nine lots and has altered most of the list. Notably, several green areas were removed from the collateral list, while additional lots in the Industrial and Supply Sector (Setor de Indústria e Abastecimento) have been added. Nonetheless, the proposal does not specify the market value of these lots that will be offered as guarantees for the loans.

If the legislative proposal gains approval, the sale or leasing of these public properties could facilitate the acquisition of up to R$ 6.6 billion from financial markets. This situation poses potential repercussions for public finances in the Federal District, raising questions about the management of public assets and the long-term financial strategy for the government if such substantial borrowing is approved.