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NEW YORK (TheStreet) -- Shares of Itau Unibanco (ITUB) - Get Free Report are down by 3.33% to $7.85 on Monday morning, after the Brazil-based financial services company and fellow bank Banco Bradesco (BBD) requested a delay in the IPO of a reinsurance company, in which they own stakes due to Brazil's worst economic crisis in a quarter century, the Wall Street Journal reports.

The two banks announced Monday that they have asked Brazil's Securities and Exchange Commission to postpone for 60 working days its analysis of the IPO for IRB-Brasil Resseguros.

Itau Unibanco has a 15% stake in the Brazilian reinsurance company, while Banco Bradesco has a 20% stake, the Journal noted.

The companies gave no specific reason for the request to delay the IPO, the Journal added. However, Brazil's struggling economy is making it more difficult for local companies to break into capital markets.

So far this year, no Brazilian company has been able to pull off an IPO, according to data from the Association of Financial and Capital markets, the Journal said.

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