Brazil FGTS Council Approves R$5.85B Fund Rescue, Depleting FI-FGTS

Brazil's FGTS Deliberative Council approved a R$5.85 billion withdrawal from the FI-FGTS investment fund, equal to all available resources as of June, leaving the fund empty. This is the first disbursement in a decade, signaling fiscal strain on the FGTS system. The move may impact liquidity in Brazilian capital markets and raise concerns about the fund's sustainability.