Latest Photo Galleries
Brazilian Markets
15h45 Bovespa |
-0,18% | 124.512 |
16h43 Gold |
0,00% | 117 |
15h53 Dollar |
+0,30% | 5,1645 |
16h30 Euro |
+0,49% | 2,65250 |
ADVERTISING
Brazilian Banks Expect to Receive US$ 12.2 Billion in Debts from Odebrecht
05/21/2018 - 11h20
Advertising
JOSETTE GOULART
FROM SÃO PAULO
The risk of construction group Odebrecht not paying its debts could affect Brazilian banks directly as they expect to receive R$ 47 billion (US$ 12.2 billion) from the group. Banks Itaú and Bradesco are among those which lent money to Odebrecht and are now in the final round of negotiations of a new loan to the group to be announced later this week.
Without money in its coffers and with a loss of some R$ 3 billion (US$ 800 million) as well as doubts over the auditors of its balance sheets, Odebrecht failed to pay R$ 500 million (US$ 133 million) in interest to investors who bought its securities abroad three weeks ago. In one year, the company will have to pay R$ 3 billion in debts expiring.
Banks fear that if Odebrecht does not pay what it owes, a process of advance expiration of its entire debt could begin, leading banks to make provisions for losses that could affect their profits directly.
BNDES, the Brazilian Development Bank, is the group's biggest creditor, with R$ 13 million (US$ 1.46 million), followed by Banco do Brasil, with R$ 10 million (US$ 2.66 million) and Caixa Economica Federal, with R$ 7.5 million (US$ 2 million).
Translated by THOMAS MUELLO