SAO PAULO, April 30 (Reuters) – Brazil’s government will announce on Monday new measures to tackle household indebtedness, President Luiz Inacio Lula da Silva said on Thursday, signaling that the program will build on a previous one established in 2023.
Speaking in a pre-recorded address to the nation, Lula said that, under the “Novo Desenrola Brasil” program, Brazilians will be able to renegotiate debt with lower interest rates, smaller monthly payments and more time to pay.
Interest rates under the program will not surpass 1.99%, the president said, adding discounts ranging from 30% to 90% on the debt amount can be reached. To pay for the debt, Brazilians will be able to access up to 20% from workers’ severance fund FGTS.
Negotiations will include debt accumulated from credit cards, personal lending and student loans, Lula said.
The leftist leader added that anyone who applies for the program will be barred for a year from accessing online betting platforms, a major cause of growing household indebtedness in the country.
(Reporting by Fernando Cardoso; Editing by Christian Schmollinger and Stephen Coates)
