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Brazilian investment bank BTG Pactual is interested in acquiring bad loans from local lender Banco Econômico, according to daily Valor Econômico.
BTG recently signed a confidentiality agreement to gain access to information about Banco Econômico, which has been in extrajudicial liquidation since August 1996, according to the report.
BTG's interest stems from a desire to re-enter the bad loans market, which it left at the end of 2015, says Valor. The exit was due to liquidity problems following the arrest of former CEO and chairman, André Esteves, in connection with the Lava Jato corruption scandal that is still plaguing politicians and executives.
At the time, the investment bank sold its bad loans business, called Recovery, to the country's largest private sector bank Itaú Unibanco. In December of this year, on the two-year anniversary of the sale, the non-competition clause signed by BTG will expire, according to the report.