Brazil launches Desenrola Brazil program for FGTS debt‑repayment scheme

The federal government has activated the Desenrola Brazil program, allowing workers to use balances from their FGTS accounts to renegotiate outstanding debts. Through the doFGTS app, users authorize banks to query and apply up to 1 000 reais per person—or 20 % of the available FGTS balance, whichever is higher—to settle credit‑card, overdraft and consumer loan obligations. Eligible participants must earn up to five minimum wages and have debts aged between 91 days and two years, with an interest rate of 1.99 % per month. By the time of reporting, roughly R$3.8 billion in debt had been renegotiated under the scheme. The program also offers a business line and a version for borrowers with FIES student‑loan debt, with a total extraordinary withdrawal ceiling of R$8.2 billion.

The initiative is managed by Caixa and aims to reduce household indebtedness while providing a structured repayment path for low‑income borrowers.