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The federal government’s debt restructuring program, entitled Desenrola, is at risk of ending its operations ahead of schedule due to delays in the legislative process in the Senate. This situation has been causing significant controversy, especially regarding revolving credit card interest rates, once they were integrated into the program. Since its implementation in July this year, Desenrola has enabled the restructuring of R$ 13.2 billion in debt. However, if the rapporteur of the bill in the Senate, Rodrigo Cunha (Podemos-AL), maintains his plan to present his report only in 30 days, the program may face suspension.
Process Delay and Risk of Suspension
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Currently, Desenrola operates based on a Provisional Measure, valid until October 3. However, due to conflicts between the Chamber of Deputies and the Senate over the processing of Provisional Measures, it was decided to convert the program into a bill with urgent processing. Thus, approval of the bill by October 3 is imperative to avoid interrupting the program. Even though it has already received approval from the Chamber of Deputies, any amendment made by the Senate would cause the bill to return to the Chamber for further consideration.
Focus on Credit Card Revolving Interest Rates
Desenrola’s focus is mainly on debt restructuring, but the central issue involves credit card revolving interest rates, now incorporated into the program. In the Chamber of Deputies, it was established that if the financial sector did not propose, within 90 days after the law was sanctioned, an alternative to the high interest rates, the limit would be 100% of the debt’s principal amount. Previously, revolving interest rates reached approximately 450% per year.
Collapse of Desenrola and Its Repercussions
Any potential collapse of Desenrola would benefit neither party, whether the government or the banks. The program’s current stage already allows consumers earning up to R$ 20,000 per month to restructure their debts directly with the banks. If the Provisional Measure expires and the bill does not receive approval, all agreements already established would be jeopardized. Moreover, the interruption would be particularly harmful when low-income citizens gained access to restructure debts of up to R$ 5,000 with banks, businesses, and public service providers. To support this operation, the National Treasury allocated R$ 8 billion from the Operations Guarantee Fund (FGO).
Prospects for the Continuation of Desenrola Brasil
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According to the schedule released by the Ministry of Economy, Brazilians are expected to be able to access the system later this month; however, this is tied to an auction among creditors, which will soon be conducted by B3. In this auction, companies will compete by offering the largest discounts, and those proposing the largest discounts will receive refinancing from the banks with the guarantee of the FGO.
Desenrola represents a crucial federal government initiative to assist Brazilians with their debts. However, delays in the Senate are threatening the program's continuity, with the inclusion of interest rates for revolving credit card balances being the main point of contention. If the bill is not ratified by October 3, the program may be suspended, putting all agreements already finalized at risk. It is vital that the Senate expedite the legislative process to ensure Desenrola's continuity and provide financial relief to indebted Brazilian citizens.
