Advertisements
The bill for the Desenrola Brasil program, created to assist consumers in default, underwent changes to benefit individual microentrepreneurs (MEIs) and micro and small companies seeking to renegotiate their debts with customers. Representative Alencar Santana (PT-SP), responsible for reporting on the bill, modified the text by proposing specific lots for these creditors in the program’s auctions. As a result, they avoid direct competition with larger corporations for National Treasury funds.
Resource Dispute and Impact on Pronampe
The government allocated R$ 8 billion from the Operations Guarantee Fund (FGO), managed by Banco do Brasil, to the initiative. However, the amount does not fully meet the demand from debtors in default, making auctions necessary. According to the rules, creditors offering the most significant discounts on the principal of the debt will be allowed to participate and access public funds. “Large banks and small retailers should not compete on equal terms. The size of the creditor must be taken into account,” Santana emphasizes.
Read also: Desenrola Brasil begins second renegotiation phase: Find out who can benefit now
The review of the document takes place amid a dispute over FGO resources. Allocating a portion of this fund to Desenrola resulted in less capital being available for Pronampe, a credit line aimed at entrepreneurs.
Given this allocation, financial institutions indicate that Pronampe resources may run out by the end of this month and see the need to add R$ 6.5 billion. The Ministry of Finance, on the other hand, reports that measures are underway to ensure the credit operation, including a contribution of approximately R$ 1 billion made by the ministry.
When asked about the situation and possible concerns regarding the volume of credit available to the sector, Santana emphasizes that Desenrola will also benefit Pronampe's target audience. “Small-business owners and microentrepreneurs will be able to qualify for the auctions and thus negotiate with their debtors.”
Outlook for Creditors and Consumers in Desenrola
According to the rapporteur, the economy will feel the program’s overall benefits: “Desenrola restores consumers’ power to reactivate their finances, benefiting consumption and the economy.” Interested creditors have until September 9 to register on the government platform that will conduct the electronic auctions.
Desenrola: Restrictions
One issue under debate concerns the interest rate cap imposed on banks that join the program, currently set at 1.99% per month. An amendment added to the bill proposes a limit on revolving credit card interest rates. The discussion involves the government, banks, and card machine operators. The economic team views this limitation with concern, fearing that banks may lose interest due to the associated risk.
Read also: Desenrola Brasil: Debt Renegotiations Anticipated by Major Retailers
The government’s aim is to clear the names of 70 million Brazilians in default and restore their access to credit.
The first stage of Desenrola began in July, focusing on bank debts. At this stage, banks automatically regularized the status of anyone who owed up to R$ 100. They also received regulatory incentives to restructure the debts of consumers with monthly incomes of up to R$ 20,000.
The next phase should begin at the end of this month, targeting the low-income population with Treasury backing. People in default with incomes of up to two minimum wages and debts of up to R$ 5,000 are eligible.
Auctions
The government will conduct auctions aimed at maximizing debt discounts, which customers can settle either upfront or over up to 60 months, with interest capped at 1.99% per month. The Treasury will cover defaults.
In addition to bank debts, customers will also be able to renegotiate their outstanding debts with retailers and service providers such as water, electricity, and telecommunications companies. Statistics from Serasa from October 2022, consolidated by
