Brazil is preparing to launch a debt renegotiation program for millions of low-income individuals using government guarantees in September.
Some 71.9 million people in Brazil have been blacklisted, according to credit bureau Cerasa, after families’ budgets were strained by the pandemic and higher borrowing costs during a surge in inflation.
“The first phase of the comprehensive renegotiation program “Decinrolla Brasil” will start on Monday,” the Brazilian Ministry of Finance said.
During this phase, banks will cancel debts of up to 100 reais and provide customers with a monthly income of up to 20,000 reais the opportunity to directly renegotiate debt.
According to the Brazilian Ministry of Finance, about 30 million people could benefit from this initiative.
The Brazilian Finance Ministry said that renegotiation for those with a monthly income of up to twice the minimum wage, equivalent to 2,640 reais, would begin in September. In these cases, the renegotiation will have government guarantees for financial and non-financial debts of up to 5,000 riyals.
This phase is the most complex of the program because it requires the government to create a platform to centralize data on consumer debt.
