The Rio de Janeiro government intends to recover approximately R$1.4 billion [1] invested by the state pension fund, RioPrevidência, in Banco Master.
This effort represents a critical attempt to protect the state's pension assets after a significant portion of public funds was lost in a failed financial institution. The recovery process follows the liquidation of the bank due to irregularities.
Acting Governor Ricardo Couto announced the plan on Monday during meetings with federal authorities in Brasília [2]. The state had invested more than R$3 billion [1] in the institution before its collapse.
"Esperamos recuperar cerca de R$ 1,4 bilhão dos recursos aplicados pelo RioPrevidência no Banco Master," Couto said [1].
According to Couto, the bank was liquidated last year after irregularities surfaced [3]. The loss of these funds creates a potential deficit for the pension system, making the retrieval of the R$1.4 billion essential for maintaining the fund's long-term stability.
"O Estado investiu mais de R$ 3 bilhões na instituição, que foi liquidada no ano passado após surgirem irregularidades," Couto said [3].
The acting governor, who is also a desembargador, met with federal officials to coordinate the recovery of these assets [2]. While some reports indicate the meetings included the minister of finance, other official accounts do not specify the full list of attendees [2].
The state is now working to determine the exact amount of recoverable assets, and the timeline for the return of the funds to the RioPrevidência accounts [1].
“The state had invested more than R$3 billion in the institution before its collapse.”
The attempt to recover R$1.4 billion highlights the volatility of state pension investments in private banking institutions. Because the state only expects to retrieve less than half of the original R$3 billion investment, the Rio de Janeiro government faces a significant capital gap that may require budget adjustments to ensure pension obligations to state employees are met.
