The Brazilian government is set to unveil a new series of financial measures next Monday aimed at helping citizens manage rising household debt. President Luiz Inácio Lula da Silva announced that the upcoming “Novo Desenrola Brasil” initiative will build upon the 2023 debt-relief framework to provide more aggressive support for struggling borrowers.
Key features of the plan include:
- Reduced Interest Rates: Rates for debt renegotiation will be capped at 1.99%.
- Significant Discounts: Borrowers may see their total debt amounts slashed by 30% to 90%.
- Severance Fund Integration: Citizens will be permitted to use up to 20% of their FGTS (workers’ severance fund) to settle outstanding balances.
- Broad Coverage: The program applies to various types of debt, including credit card balances, personal loans, and student loans.
In a notable policy addition, President Lula stated that any individual who participates in the program will be prohibited from using online betting platforms for one year. This restriction is intended to address the growing role of digital gambling in driving domestic financial instability.