The value of compensation that Brazilian banks have to pay to depositors on their savings in a landmark case is around 8 billion reais ($3.5 billion), Murilo Portugal, the president of the group representing the banking industry, known as Febraban, said on Wednesday. Millions of depositors claim they were incorrectly remunerated when the Brazilian government changed the indexes to which savings rates were pegged between 1989 and 1991. Savers brought thousands of lawsuits against banks years later. The government argues that a ruling against banks could have devastating consequences on the economy.
Portugal spoke at an event in São Paulo.
($1 = 2.29 Brazilian reais)
Editing by Meredith Mazzilli