The Chief Executive Officer of state-controlled Banco do Brasil SA, Rubem Novaes, said on Wednesday that the bank has around 4 billion reais ($1.03 billion) in unsecured debt with construction conglomerate Odebrecht SA, which filed for bankruptcy this week.

“We have set aside provisions for most of the loans,” Novaes said, adding that Banco do Brasil will suffer losses if creditors’ debts are discounted at more than 50% in the restructuring.

With debts of 98.5 billion reais, Odebrecht’s bankruptcy protection case is one of the largest in Latin American history.

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