Master presents alternative plans to the Central Bank, but without definitive offers.
Although alternatives have been presented, the chances of approval for the new operation are low, according to analysts.
247 - Master, a financial institution owned by Daniel Vorcaro, presented several alternatives to the Central Bank (BC) for its acquisition project with Banco de Brasília (BRB), after the regulator rejected the initial proposal. However, the new options are still being developed, meaning that no new formal request has been filed yet. This information was confirmed by sources at the newspaper Valor, who investigated the details of the discussions.
Although they have not yet defined a final format, both Master and BRB do not rule out the possibility of submitting a revised proposal to the Central Bank. However, experts in the financial sector indicate that the chances of approval for a new request, regardless of the form, would be low, given the complexity of the process and the criteria required by the regulator.
In a meeting with the president of the Central Bank, Gabriel Galípolo, the controller of Master, Daniel Vorcaro, discussed alternative plans. Meanwhile, the president of BRB, Paulo Henrique Costa, met with the directors responsible for oversight, Ailton de Aquino Santos, and for the organization of the financial system and resolution, Renato Gomes. According to sources familiar with Master's strategy, the Central Bank will evaluate any new operation according to regulatory deadlines, without rushing into an emergency analysis.
One of the sources involved in the negotiation stated: "The meeting was productive, Master has several plans, but still needs to refine the proposals. The bank has stood firm in recent months, even during a dark period, and is able to wait longer." The institution would be willing to await the conclusion of the process, even if it means a few months of waiting.
However, in order for Master to weather this period of uncertainty, analysts believe the bank will need a new line of liquidity from the Credit Guarantee Fund (FGC), as well as the R$4 billion it had obtained from the agency in May of this year. The problem is that, according to experts, the FGC does not seem willing to release more funds at the moment. "Analyzing Master's recent cash flow, we need to understand the role of the FGC and what remains of the first line of credit," commented another executive in the sector.
At the time of writing, neither Master nor BRB had commented on the ongoing negotiations, leaving the situation uncertain. Expectations now turn to the institution's next moves and the Central Bank's decisions.
