Government wants to end the loan guaranteed by the Fund

Without support to guarantee, in Congress, the end of the FGTS anniversary withdrawal, the Minister of Labor, Luiz Marinho, intends to propose to the Board of Trustees of the Fund that it suspend the anticipation of the withdrawal, a measure that works like a bank loan. The interest ceiling is 2.05% per month. The overdraft cost, in March, an average of 7.15% per month and the revolving credit card, 14.92%, according to the Central Bank. And the payroll for private sector workers, 2.8%.

The measure, if implemented, would remove one of the cheapest forms of loan from the market, precisely at a time when more than 70 million people, or 43.43% of the Brazilian adult population, have credit restrictions, according to Serasa Experian. It also coincides with the moment when the government is putting pressure on the Central Bank to reduce the basic interest rate, currently at 13.75% per annum.

It would suspend further operations. Those who have already hired them would not be affected. Only the anniversary loot would be retained.

The government’s justification is that even if the anticipation of resources is not considered a withdrawal, the value needs to be contingent, according to the Ministry of Labor.

The agency assesses that the change could have a positive impact on the net result of the FGTS accounts and favor public policies for housing and sanitation. One of the sectors that supports Marinho’s idea is civil construction.

Another change that would be at stake, according to “O Globo” would be the change in the percentages of the anniversary withdrawal, which are between 5% and 50%. Congressional approval would not be required, as the legislation allows the Ministry of Finance to adjust the percentages once each year.