Desenrola Brasil: payroll debts are included – 06/28/2023 – Market

The Minister of Finance, Fernando Haddad, announced, this Wednesday morning (28), that banks, other financial institutions and other creditors can now join Desenrola, for debt renegotiation.

“Now it will go into operation for creditors to adhere to the program,” he said in conversation with journalists. It has not yet been announced when debtors will be able to register.

Earlier, the ordinance was published in the Federal Official Gazette with the rules of the program, which include the removal of the name from the list of defaulters of those who owe up to R$ 100 and the renegotiation of payroll loan amounts in track 1 of the program .

The federal government estimate is that 70 million people will participate in Desenrola Brasil and up to R$ 100 billion can be renegotiated from Brazilians who are indebted.

The ordinance includes the possibility of renegotiation in track 1 of debts that originate from payroll loans. Another novelty is that only people who entered the negative list after January 1, 2019 and had their name maintained until December 31, 2022 will be able to renegotiate.

The other previously announced conditions were maintained:

• Have debts of up to R$ 5,000

• Monthly income of up to two minimum wages (R$ 2,640) or who is enrolled in the CadÚnico (Single Registry for Social Programs of the federal government)

• Debts must be of a private nature

• Debts with real guarantee, real estate financing, rural credit and operations with third-party funding or risk are not included in the program

• Debtors will be encouraged to take a financial education course

The government made it official that creditors must remove the name of those who owe up to R$ 100 from the list of defaulters within 30 days. However, the withdrawal of the name does not represent a debt forgiveness. It needs to be paid by the debtor through Desenrola Brasil. It is estimated that 1.4 million people will benefit from the measure, according to the Secretary of Economic Reforms at the Ministry of Finance, Marcos Barbosa Pinto.

How will be the payment?

Payment can be made in cash or in installments over 60 months, with the minimum installment amount being R$50. The first installment must be paid between 30 and 59 days, depending on the type of contract and the interest rate will be 1.99% per month with the contract being signed until December 31, 2023. Debt amortization will be made through the Price system, in which the installments have the same value throughout the period.

According to the ordinance, the contracting of the renegotiation will only be done electronically on a digital platform, which will still be created by an operating entity to be announced by the FGO (Fundo Garantidor de Operações), the guarantor of the agreements made in track 1. The debtor will need to have a silver or gold level account on the gov.br portal to join the program. Click here to find out how to get this account.

The operating entity will still be responsible for determining how the discount auction will go. Debts will be divided into categories such as credit card, retailers, electricity and sanitation. Lenders offering the highest discounts will be the winners and will be available on the platform for renegotiation. The categories and rules of the auction will still be published in another announcement by the ministry.

Another measure of the ordinance was the inclusion of financial institutions operating regionally, credit unions and cooperative banks to negotiate debts, in addition to banks.

The rule establishes that creditors will have five days to remove debts renegotiated in Desenrola Brasil from the debtor’s register after receiving payment from financial institutions.

Limit on track 2

The text signed by Fernando Haddad also brings a limitation on track 2 of the program, which will be aimed at renegotiating customer debts with banks. The agreements can only be made by those who receive a monthly salary of up to R$ 20 thousand and the following debts will not be included:

• That are related to rural credit

• That have a guarantee from the Union or from a public entity

• Who do not have the credit risk fully assumed by the financial agents

• That have any kind of prediction of contribution of public resources or that have any interest rate equalization by the Union

In the provisional measure signed on June 5, there were no such conditions.

Debts can be negotiated through the digital platform or through the channels indicated by the banks. Contracts must be signed by December 31, 2023 and payment will have a minimum term of 12 months. Only those who were on the list of defaulters on December 31, 2022 can enter the program.

How the government will facilitate the negotiation

Track 1

• The government is going to reserve between R$8 billion and R$10 billion from the FGO to serve as a guarantee in new credit operations, whose resources will be used to pay off debts at a discount. In case of default, the fund covers the losses of the banks.

Track 2

• There will be no FGO coverage, but the government will grant a regulatory incentive that, in practice, frees up space on the balance sheets of financial institutions so that they can expand the offer of credit to consumers.

What are the next steps?

Membership will be digital, on a platform that is still being developed. In addition, the renegotiation payment can be made in cash or in up to 60 installments, with interest of 1.99% per month.

The first installment must be paid within 30 days and the amounts will be paid by Pix, debit or boleto. The negotiation platform that will be launched will have information such as a list of debts that can be negotiated, the discount offered by the creditor and the status of each of the debts.

Before, however, there will be the accession of the creditors. Then, an auction will be held by credit category (for example: bank debts, basic service debts and company debts), with the winner being the creditor offering the highest discount for the debt to be renegotiated. Those who propose smaller discounts will be excluded from the program.

The rules for participation in the auction and its public notice will still be released by the Ministry of Finance.

After the auction, the process of including the debtors in the program will be carried out and, finally, there will be the debt renegotiation period between the debtor and the bank chosen by the defaulting person. The debtor will pay the bank, which will transfer the amount to the creditor.

Step by step for track 1 debtors

• Tier 1 debtors will be able to access the Desenrola Brasil platform with their gov.br user, requiring a silver or gold level account
• On the platform, the debtor will be able to view the debts registered by the creditor companies and the discount offers
• If the offer is considered attractive, the citizen will have two options: pay the reduced amount in cash or finance it in up to 60 months, with an interest rate of up to 1.99% per month
• When choosing the financing option, the debtor will be able to select which bank he will contract the new credit with. Institutions can give interest rate discounts to attract a greater number of operations
• Payment of installments can be made by debit account, bank slip or Pix. The first installment will be charged 30 days after the renegotiation