At BRB, the specter of financial risk returns to haunt them.

Brasilia - Just when it seemed that BRB was finally on its way to saving itself from the shipwreck it finds itself in amidst the Banco Master scandal, financial risk is once again looming over the public bank in Brasilia, according to sources from the institution's top management interviewed by NeoFeed .

As a result, the risks of liquidation, intervention by the Central Bank, and even privatization of BRB, which seemed more distant last month, continue to haunt the bank while its cash reserves are not strengthened and attempts at capitalization have not produced concrete results.

Uncertainty regarding BRB's ability to recover from the financial slump suffered by Daniel Vorcaro 's bank has once again hovered over the state-owned bank's building this week, following the failure of the deal to sell Master's assets to the asset manager Quadra Capital.

On April 20, the independent asset manager that administers ports in Espírito Santo had signed an agreement with BRB to purchase R$ 15 billion in assets from Master held by the federal capital's public bank.

The transaction involved a promise of a cash payment of R$ 4 billion and an advance of R$ 1 billion, but on Friday, July 17, the state-owned bank announced that the deal had been canceled.

"The Company remains open to evaluating alternatives and opportunities with other market participants, should it deem it convenient and appropriate, observing its governance criteria, capital discipline, and value creation for its shareholders," BRB said in a material fact notice released to the market.

According to the public bank from Brasília, the termination of the agreement with Quadra "does not alter the Company's strategy regarding the assets subject to the transaction."

NeoFeed has learned that the bank is already looking for a new investor to replace Quadra.

"Regarding Quadra Capital, negotiations were terminated by mutual agreement after the conclusion of the discussion period between the parties, due to a lack of convergence on the economic and financial parameters of the operation. In this context, the Bank decided to directly manage and place these assets on the market, in line with its strategy of generating value and protecting the interests of its shareholders and clients," BRB said in a statement to NeoFeed .

Even the R$ 6.6 billion loan, which is being negotiated by a consortium of banks with the Credit Guarantee Fund (FGC), and for now the main salvation for BRB, remains in limbo – and also uncertain, according to people familiar with the negotiations.

Behind the scenes, sources claim that Banco do Brasil is leading this group of banks - when contacted for comment, Banco do Brasil declined to respond.

Celina Leão, governor of the Federal District and controller of BRB, declared in recent days to the local press that the loan is in its final stages of completion and is on track to be signed. She even met with the president of BRB, Nelson de Souza, in a new meeting with the president of the Central Bank (BC), Gabriel Galípolo, last week.

At the end of May, after intense political maneuvering, Supreme Federal Court (STF) Justice Luiz Fux approved an agreement between the Federal District government, the federal government, and BRB, in an attempt to prevent the state-owned bank from collapsing.

While public and private banks would provide a kind of guarantee for the operation, the Federal District government would offer its shares in the State Participation Fund as collateral. The Brasília government wanted a formal endorsement from the Treasury, but due to its negative fiscal conditions, the Ministry of Finance did not agree.

Even so, the agreement was announced as a possible way out of the end of the tunnel, but to this day the loan has not yet been released. To make matters worse, the elections are even closer and the political backdrop is hindering negotiations. "If we weren't in an election year, this loan would have been approved a long time ago," said a source at BRB.

"BRB informs that negotiations related to the loan operation foreseen in the agreement approved by the STF are ongoing, observing the procedures and evaluations necessary for its implementation. The Bank remains confident in the completion of the structural measures planned to strengthen its capital position," BRB told NeoFeed .