The government of the Federal District has submitted a bill to the Legislative Chamber of the Federal District authorising a capital injection into BRB Banco de Brasília after the Master Bank fraud case, allowing borrowing of up to BRL6bn ($1.16bn) from the Credit Guarantee Fund or other lenders.
The proposal also cuts from 12 to 9 the number of public land plots and properties that may be pledged as collateral, O Globo reported.
The move follows discussions with regulators and investigators as authorities seek to stabilise the bank before it publishes its March financial statements. Expected public support rose after testimony by a supervision director at the Central Bank of Brazil to the Federal Police indicating provisions of more than BRL5bn ($970mn).
Lawmakers have yet to agree to fast-track the measure, with some resisting a vote amid concern about political fallout in an election year.
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