Concerned about family debt, the federal government is preparing a new debt renegotiation program, in a kind of “New Development”. The proposal is being managed by the Ministry of Finance and should be restricted to the most expensive types on the market: credit card, special check and unsecured personal credit (where the person takes out a loan, but does not need to give their car or house as collateral in case of non-payment).
In the opinion of the government and the banks, these are the most problematic lines, identified as the main causes of the population’s excessive indebtedness and the high commitment of income to the payment of installments.
The Minister of Finance, Dario Durigan, stated, in an interview with columnist Míriam Leitão on GloboNews, that the idea is to offer an 80% discount on the debt. According to him, the program is expected to be ready in around ten days.
— What we are going to do is encourage a broad discount and, eventually, with government guarantees, if the renegotiation is carried out, the person defaults again with the bank in front. Even if you negotiate an 80% discount, there is 20% of the debt left to be refinanced. Then the government can come and say, banks, fintechs, credit operators, renegotiate the debt with a broad discount, but leave a new interest rate here for what has to be refinanced, and the government makes a kind of guarantee together with the banks — he stated.
The logic of the program that has been discussed with banks is to try to reduce debt service, going through a process of encouraging migration to cheaper instruments and longer terms, freeing up part of the family budget.
