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Top Brazilian banks see share dips as Odebrecht concerns worsen

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Top Brazilian banks see share dips as Odebrecht concerns worsen

Brazil's largestlisted banks on July 21 saw the most dramatic dip in their shares in a month asconcerns on the finances of corruption-entangled engineering group Odebrecht SAintensified and talks of bankruptcy surfaced, Reuters reported.

had its preferredshares declining 1.3% to 33.96 Brazilian reais while those of Banco Bradesco SA dropped 0.7%. Common shares of dipped 1.7%, thereport noted.

Odebrecht ina statement denied that it will pursue an in-court reorganization, noting that ongoingtalks with banks and likely assets sale "continue to be positive," Reuterscited financial blog Brazil Journal as saying on the same day.

Brazilian banksare reportedly receiving restructuring requests for problematic loans while Odebrechthas about 100 billion reais in debts, according to Reuters.

Meanwhile, agroup of Peruvian lenders could quicken the release of a $4.125 billion loan toPeru's gas pipeline operator Gasoducto Sur Peruano GSP SA if Odebrecht fully leavesthe pipeline construction project, Reuters reported the same day, citing "threepeople familiar with the matter." The Brazilian firm's exit from the pipelineproject would lessen the risk of financing, one of the sources said.

As of July 20, US$1 was equivalent to 3.24 Brazilianreais.