Government wants to reduce INSS payroll interest – 02/23/2023 – Market

The Minister of Social Security, Carlos Lupi, said this Thursday (23) that the government will seek a reduction in interest rates charged on payroll loans for INSS (National Social Security Institute) retirees and pensioners at a meeting next month. .

For Lupi, the current level of payroll interest is “criminal”. The minister stated that the topic will be discussed at the next meeting of the CNPS (National Social Security Council), in March.

“Charging 3.5% of the population that earns an average of 60% of the minimum wage I think is criminal”, said Lupi to journalists after fulfilling an agenda in Rio de Janeiro. “At the next meeting (of the CNPS), we will definitely lower these interest rates.”

Last November, the National Social Security Council approved an increase in the interest ceiling charged on payroll loan operations for INSS retirees and pensioners from 2.14% per month to 2.34%. In operations carried out by credit card, the rate rose from 3.06% per month to 3.36%.

Lupi did not say how much the interest rate could go, but he stressed that he will work to reduce it to “the minimum possible”.

The minister’s criticisms were made in the wake of President Luiz Inácio Lula da Silva’s (PT) attacks on the Central Bank due to the level of the Selic, the basic interest rate of the Brazilian economy, currently at 13.75% per annum.

Febraban (Brazilian Federation of Banks) confirmed that the topic is being evaluated and debated by the sector together with the Ministry of Social Security and the INSS.