Brazil launches third phase of Desenrola debt renegotiation program

The Brazilian government has initiated the third phase of the Desenrola program, aimed at facilitating the renegotiation of old debts for consumers and micro-entrepreneurs. An extraordinary edition of the Official Gazette published a call for financial institutions, banks, and credit rights investment funds (FIDCs) to declare the volume of debts they intend to offer for renegotiation.

Finance Minister Dario Durigan estimated that up to R$ 90 billion in old debts could be presented. Given the program's requirement for a minimum 90% discount, the maximum estimated cost to the public treasury would be R$ 9 billion. The process involves several stages, including the presentation of eligible debt portfolios, followed by an auction scheduled for November or early December to determine which portfolios the Union will purchase.

Additionally, the Desenrola Adimplentes initiative offers informal workers and self-employed individuals the opportunity to refinance bank loans of up to R$ 15,000 with interest rates capped at 1.99% per month, provided they have maintained payments up to date or have delays of less than 90 days.