Brazil Court Approves Compensation for Decades-old Depositor Losses
A Supreme Court justice on Monday approved an agreement to compensate bank depositors for losses caused by government policies several decades ago, settling more than a million legal disputes that have hung over Brazil's banking system since the 1980s. Depositors who lost their savings due to economic programs applied in the 1980s and 1990s to tackle hyperinflation will have two years to sign up for the compensation deal, Justice Dias Toffoli ruled. Those who are owed up to 5,000 reais ($1,520) will be fully reimbursed, while those with larger liabilities will get between 8 percent and 19 percent less. Around 60 percent of the depositors covered by the agreement are owed up to 5,000 reais, according to the Brazilian Federation of Banks (Febraban). The total value of reimbursements will depend…