Bloomberg News

Brazil to Liquidate Banco BVA After Attempts to Sell Lender Fail

June 19, 2013

Banco BVA SA, the lender controlled by Brazil’s central bank since Oct. 19, will be liquidated after efforts to find a buyer failed.

The bank, with seven branches, accounts for about 0.17 percent of assets in Brazil’s financial system and 0.24 percent of deposits, the central bank said yesterday in a statement. Investors own about $45 million of international bonds issued by the Rio de Janeiro-based lender that would have matured in February 2014, according to data compiled by Bloomberg.

The central bank is investigating who’s responsible for BVA’s collapse and the findings “could lead to punitive measures,” according to the statement.

BVA, which specializes in loans to mid-size companies, is the seventh bank in Brazil to be seized or bailed out since 2010. The nation’s privately owned deposit-insurance fund, Fundo Garantidor de Creditos, has paid more than 1.2 billion reais ($539 million) to some of BVA’s local bondholders and depositors since October.

To contact the reporter on this story: Cristiane Lucchesi in Sao Paulo at clucchesi5@bloomberg.net

To contact the editors responsible for this story: David Scheer at dscheer@bloomberg.net; Christine Harper at charper@bloomberg.net


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