Mastercard suspended cards issued by Will Bank, a unit of the troubled Brazilian lender Banco Master. The suspension resulted from non-compliance with settlement schedules.
This action coincides with Brazil's central bank ordering the liquidation of Will Financeira SA. The central bank acted after attempts to find a market solution for the distressed institution failed.
The suspension stems from the broader financial collapse of Banco Master. Banco Master was liquidated amid allegations of fraud and a severe liquidity crisis.
The failure places a substantial burden on Brazil's private deposit guarantee fund. The fund has already been triggered for billions of reais in payouts related to the collapsed lender.