Brazil's development bank BNDES registered a loss of 2.17bn reais (US$686mn) in 1H16 as the country's deep recession pushed up default-related provisions.
According to a results report from the bank, it saw a net income of 3.52bn reais during the same period in 2015.
This is the financial institution's first negative result since the first half of 2003, when losses amounted to 2.40bn reais.
According to BNDES, the expenses for loan loss provisions totaled 4.44bn reais in the first half of the year, compared to 480mn reais in the same period of 2015 and 988mn reais in 2H15, "reflecting the unfavorable economic environment in Brazil in the first six months of this year."
The bank's default rate jumped to 1.38% at the end of June from 0.02% at the end of December last year.
BNDES's loans and transfers portfolio reached 647bn reais at the end of H1, a decrease of 7% compared to December 2015.