The federal government launched the Unwind Brazil, an emergency program to help Brazilians get out of default and regain access to credit. The initiative is coordinated by the Secretariat for Economic Reforms of the Ministry of Finance and has the support of financial institutions accredited by the Central Bank.
How Desenrola Brasil works
The program is divided into three stages, the first two of which started this Monday (17):
- Bank debt allowance of up to BRL 100: people who have debts in that amount will have their name cleared automatically by the banks, without having to do anything. This measure could benefit about 1.5 million people.
- Renegotiation of bank debts with no value limit: people who have an income of up to R$ 20,000 per month and bank debts will be able to negotiate directly with financial institutions, through the channels indicated by them. Debts can be paid in at least 12 installments. It is necessary to have been included in the defaulter register by December 31, 2022. This step can benefit more than 30 million people and involve approximately R$ 50 billion in credits.
The third stage of the program will begin in September and will cover people with debts of up to R$5,000 and who earn up to two minimum wages (R$2,640) or are enrolled in the Single Registry for Social Programs of the Federal Government (CadÚnico). In this case, financial agents will have to qualify on the Desenrola Brasil Operations Guarantee Fund (FGO) platform and provide data on defaulters.
To encourage renegotiations, the government offers financial institutions a regulatory incentive to increase the supply of credit.
