Desenrola Brasil: see which banks will participate – 09/06/2023 – Market

Three of the main banks in Brazil confirmed that they will participate in the Desenrola Brasil program, launched on Monday (5), which aims to renegotiate the debts of individuals.

Banco do Brasil, Bradesco and Itaú Unibanco informed the Sheet who will enter the program that should start in July. Caixa Econômica Federal, Mercantil and Banrisul announced that they are awaiting regulation of the measure, to be published by the Ministry of Finance in the coming days.

Santander, Daycoval, PagBank, Nubank, C6, Pan and Inter did not respond until the report was published. BMG said it will not comment.

In a note, Febraban (Brazilian Federation of Banks) claims to have participated in negotiations with the federal government and says that the program is a way to guarantee future credit to those who are indebted.

“Febraban believes that the Desenrola program has the potential for credit to continue to be granted in a safe manner and within borrowers’ needs”, says the entity’s president, Isaac Sidney.

The participation of the banks is important for the execution of the program, since it will be the financial institutions that will carry out the credit operations and receive the amount from the debtor, subsequently transferring it to the creditor.

What is Desenrola Brasil?

The program will have two levels of debt renegotiation. Tier 1 will be restricted to the renegotiation of debts of up to R$5,000, for citizens with a name on the register of defaulters on December 31, 2022 and who earn up to two minimum wages (R$2,640) or are registered in the CadÚnico (Cadastro Único para Federal Government Social Programs).

Track 2 will be for people with bank debts, with the possibility of direct renegotiation with the financial institution. The government’s expectation is to start the program in July and that more than 70 million people can benefit, renegotiating up to R$ 100 billion in debt.

One of the conditions for the bank’s inclusion in the program will be to remove the person who has debts of up to R$ 100 from the list of defaulters. According to the Ministry of Finance, the measure does not represent debt forgiveness, but rather a way of allowing the debtor to participate in Desenrola Brasil.

“The bank will remove her name from there, will not add more and will not actively collect this debt. Banks do not call this forgiveness because it is against banking principles, but, in practice, the debt will not be collected” , explained the Secretary for Economic Reforms at the Ministry of Finance, Marcos Barbosa Pinto, in an interview with Sheet.

The expectation is that 1.4 million people will benefit from the measure. This condition that will be imposed on the banks has nothing to do with the debt renegotiation of the two ranges involved in the program.

The Ministry of Finance should publish in the next few days a resolution defining criteria for bank participation and also stipulating conditions for financing.

The intention of the folder is that the renegotiations can be paid in cash or in up to 60 installments, without down payment, with interest of 1.99% per month and the first installment being charged after 30 days and can be paid by Pix, debit or boleto .

The renegotiation must be done by cell phone, through a platform that will be created and will need an account on the gov.br portal. On the platform, the person will have information such as a list of debts that can be negotiated, a discount offered by the creditor and the status of each debt.

Who can participate in Desenrolla?

• Debtor: natural person with name in the defaulter register and who can settle the debts with own resources or taking out a loan

• Creditor: legal entity that included the debtor in the defaulter register. You must request inclusion in the program and offer discounts on debts and an option to exclude “small value” debts. The amount is not specified in the provisional measure, but the Ministry of Finance says it will be R$ 100.

• Financial agent: banks or financial institutions authorized by the Central Bank to carry out credit operations. They will pay with their own resources the amounts of the debts and receive payment guarantee of the 1st FGO (Operations Guarantee Fund) payment guarantee.

What are the rules for joining the program?

In track 1 of the program, debtors who meet the following conditions will be accepted:

• Have your name on the defaulter register by December 31, 2022

• Debts of up to BRL 5,000 and of a private nature

• Monthly income of up to two minimum wages (R$ 2,640) or who is enrolled in CadÚnico

• They are not included in the real estate financing program, rural credit and other operations

• Debtors will be encouraged to take a financial education course

Track 2 of Desenrola Brasil will only be aimed at those who have debts with banks, which will offer direct renegotiation to customers. In return for debt discounts, the government will offer a regulatory incentive to increase the supply of credit, but there will be no FGO guarantee.

In both ranges, amounts traded through Desenrola Brasil will not be charged IOF (Tax on Financial Operations).

How will it work?

The first stage will be the accession of creditors and banks, which should start in early July. 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. Anyone who proposes smaller discounts will be excluded from the program.

In each category, there will be a kind of queue of debts waiting to be negotiated. “If you have BRL 1 billion [do FGO] for the telecommunications category, for example, it is coming in order. The first debt has a 90% discount, the second, 70%. Keep stacking until you use all the money. Once all the money is used, the rest is left out”, explains secretary Marcos Barbosa Pinto, who predicts that the stage will last until mid-August.

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.

The expectation is that the trading platform will remain open for two or three months for the conclusion of these negotiations.

Step by step for track 1 debtors

• Tier 1 debtors will be able to access the Desenrola Brasil platform with their user gov.br
• 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