Agreement between banks and savers foresees payment of up to R $ 5,000 at sight, rest will be paid in installments, sources say

Acordo entre bancos e poupadores prevê pagamento de até R$5 mil à vista, restante será parcelado, dizem fontes

The agreement between banks and savers in relation to the losses resulting from economic plans provides for the disbursement of a first installment of up to 5,000 reais after approval by the Federal Supreme Court, sources familiar with the negotiations said.
In a statement, the Brazilian Attorney General's Office (AGU), the Central Bank, the Brazilian Institute of Consumer Protection (Idec), the Brazilian Front of Savers (Febrapo) and the Brazilian Federation of Banks (FEBRABAN) said earlier that they had concluded negotiations yesterday to close judicial disputes over the Bresser, Verano and Collor II economic plans of the 1980s and 1990s.
"Those who have up to this amount receive in sight, those who have the most receive this initial value, the rest enters a payment schedule," a source told the bank.
The agreement is due to be filed on Tuesday in the STF. The objective, according to another source, is to allow homologation to take place before the judicial recess at the end of the year.
At the end of last month, the AGU had already reported that the parties reached a consensus on the financial conditions that would guide the agreement, considered the most difficult part to reach an understanding. The estimate at the time was that the agreement encompassed values ​​that would reach around 10 billion reais to be paid by the banks to the savers.
According to the first source, who participated in the negotiations by the banks, however, the effectiveness of the agreement still depends on the STF to complete the judgment on the constitutionality of the economic plans, which can be concluded in early 2018.
At the end of November, the AGU said that the agreement should close about 1 million lawsuits. The AGU entered the discussion last year after consumer rights advocates called for mediation with financial institutions involving losses to the savers caused by the plans.
An earlier meeting of the savers with banks mediated by the AGU eventually ended up without agreement at the end of October. The banks' proposal was to apply a discount of 15 to 20 percent on amounts owed by financial institutions, while consumer organizations charged lower discount percentages.
Shares in banks fell on Tuesday. Banco do Brasil (SA: BBAS3) had a 0.6 percent devaluation, Bradesco (SA: BBDC4) had a 1.3 percent drop, Itaú Unibanco (SA: ITUB4) was down 1.25 percent. Santander Brazil (SA: SANB11) was down 0.5 percent.