Brazil launches Desenrola Brasil allowing workers to use FGTS to settle debts

From 25 March, Brazil’s federal government opened the Desenrola Brasil programme, letting formally employed workers with monthly earnings of up to five minimum wages tap their Fundo de Garantia do Tempo de Serviço (FGTS) balances to renegotiate overdue obligations. Participants may use the higher of 20 % of their FGTS balance or R$ 1,000 to amortise or pay off debts such as credit‑card bills, overdrafts and Consumer Direct Credit (CDC). The scheme offers discounts of up to 90 % on the original amount, a maximum interest rate of 1.99 % per month and repayment terms of 12 to 48 months, with all debts consolidated into a single operation.

The process is fully digital: workers authorize access to their FGTS balance through the official app, then approach their bank, which can query the balance for up to 90 days. Caixa Econômica Federal administers the funds and transfers the agreed amount directly to creditors. While using FGTS suspends new annual withdrawals and anniversary‑withdrawal advances until the balance is restored, priority is given to inactive accounts, though active accounts are also eligible. The government estimates the programme could mobilise up to R$ 8.2 billion of FGTS resources, aiming to curb the roughly 5 % of the population currently in arrears.