INSS consignment: Ministries must have meeting with Lula – 03/27/2023 – Market

The Civil House and the Ministries of Finance and Social Security are due to meet this Tuesday (28) with President Luiz Inácio Lula da Silva (PT) to try to reach an agreement on the ceiling of the INSS payroll interest rate, after the crisis generated by the suspension of credit for retirees and pensioners.

The decision was taken on Monday night (27th), after a meeting between the Executive Secretary of the Civil House, Miriam Belchior, the Executive Secretary of the Treasury, Gabriel Galípolo, and the Minister of Social Security, Carlos Lupi. There was no resolution at the meeting.

Tuesday’s meeting should take place shortly before the meeting of the CNPS (National Social Security Council) scheduled for 2 pm. The possibility of postponing this new deliberation is considered remote by members of the government, as the councilors already have the tickets purchased.

Such as Sheet showed, the reduction of the INSS payroll loan interest ceiling from 2.14% to 1.7% was the result of a conflict between Lupi and the Planalto Palace.

According to reports from members of the government, the measure was even presented to Lula in a meeting on the 8th and the representative gave the endorsement for the proposal to begin to be processed internally and to hear the ministries involved, in particular the Treasury.

Lupi, in turn, understood —according to interlocutors— that he could continue the analysis of the topic at the CNPS meeting held last Monday (13).

The cut in the INSS payroll loan interest ceiling was approved by 12 of the 15 CNPS participants – the three employer representatives were the only votes against the measure.

The Chief Minister of the Civil House, Rui Costa, said last week that the INSS payroll loan interest rate ceiling should be slightly below 2%. According to him, the new index “will be higher than 1.7%, because Banco do Brasil and Caixa say that this rate does not make the loan profitable”.

Financial institutions claim that, if there are no changes, the profitability with this type of operation will be negative – which makes loans unfeasible.