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Banco do Brasil to end exclusive deals on payroll loans
October 10, 2012 / 4:21 PM / in 5 years

Banco do Brasil to end exclusive deals on payroll loans

BRASILIA, Oct 10 (Reuters) - Banco do Brasil, Brazil’s largest lender, agreed on Wednesday to end exclusivity contracts that prohibited some of its clients from acquiring payroll-deductible loans from other banks.

The deal was approved by Brazil’s antitrust regulator CADE, ending a 2010 case brought by civil servants who complained about the exclusivity contracts imposed by Banco do Brasil.

“This ends the requirement by Banco do Brasil for exclusivity in payroll-deductible (loan) contracts linked to public institutions,” said Marcos Paulo Verissimo, a member of the CADE board.

The deal applies to the current and future payroll-deductible contracts of civil servants.

As part of the deal, the bank will also pay 65 million reais ($31.87 million) to a fund administered by the justice ministry.

Shares of Banco do Brasil were down 0.61 percent at 1:15 p.m. local time (16:15 GMT) after starting the day in positive territory.

$1 = 2.0399 Brazilian reals Reporting By Leonardo Goy, Writing by Alonso Soto; Editing by Tim Dobbyn

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