BTG Pactual Groupsaid it is "merely speculative" that Brazil's credit guarantee fund FGCwill approve the bank's plans to purchasePortugal-based Banif-Banco Internacionaldo Funchal SA's Brazil unit Banif- Banco Internacional do Funchal (Brasil) SA.

The bank's July 20 statement follows an O Estado de S. Paulo report from July 19 claiming that FGC's board plansto approve the transaction as it would enable BTG Pactual to repay 2 billion Brazilanreais of a credit linefrom 2015, when the bank had a liquidity crisis.

Although the FGC did not confirm its approval of the deal, sourcestold the publication the agreement is "virtually closed." BTG Pactual'sstatement did not offer further details on the pending deal other than to say thatnothing has changed since the agreement with Banif was made earlier in July.

As of July 20, US$1 wasequivalent to 3.24 Brazilian reais.