INSS payroll can be just below 2% – 03/21/2023 – Market

The Chief Minister of the Civil House, Rui Costa, said this Tuesday (21) that the ceiling for the interest rate on payroll loans from the INSS (National Social Security Institute) should be slightly below 2%.

The value is intermediate to the current level of 1.70%, adopted after last week’s cut, and the previous level of 2.14%.

“All of us are going to try to seek, listening to the market, Banco do Brasil and Caixa, a number that is less than 2.14%”, said the minister, in an interview with GloboNews. 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”.

Then, asked if the ceiling could be up to 2%, Rui Costa said: “Maybe a little less than that”. The head of the Civil House also complained about revolving credit to retirees, as they have higher interest rates.

The theme, which was the target of noise in the government, was discussed at a meeting at the Planalto Palace on Monday (20). A Sheet had anticipated that a range for the ceiling between 1.9% and 2% was quoted as feasible, by people familiar with the conversations —before the cut, the banks defended that the ceiling would fall from 2.14% to 2.08% .

After the meeting, the Civil House released a note that says that the government will hold a new meeting until next Friday (24) in search of an agreement for the impasse. The meeting will be attended by representatives of the financial system and banks, who complained about the measure announced by Minister Carlos Lupi.

“The expectation is to reach an agreement on the rate. There is a forecast that, next week, the Minister of Social Security will call a new meeting of the National Social Security Council to discuss the topic”, says the note.

Also participating in the meeting were the executive secretaries of Finance, Gabriel Galípolo, and of the Ministry of Labor and Employment, Francisco Macena, in addition to the presidents of Caixa Econômica Federal, Rita Serrano, and of Banco do Brasil, Tarciana Medeiros.

According to interlocutors interviewed by the Sheetthe Ministry of Finance will mediate a working group with several actors to think about a way out and find a solution to the impasse.

Earlier, this Tuesday, President Luiz Inácio Lula da Silva (PT) said he was in favor of reducing the interest rate ceiling on INSS payroll loans, but said that it was done wrongly, without discussing it with the economic team and the political core of the government and with the banks.

The measure was announced by Minister Carlos Lupi and provoked a great deal of noise from the government. In a recent ministerial meeting, Lula criticized ministers who announce “genius” without consulting the Planalto Palace.

It was a message not only for Lupi but also for Márcio França (Department of Ports and Airports), Luiz Marinho (Labour) and also for Flávio Dino (Justice and Public Security).

Lula gave a live interview to the Brasil 247 portal this Tuesday morning (21). The president was asked about the work of his team, which would have recently hit his head, which led to his complaint at the ministerial meeting

The president said he was satisfied with his ministers, and then commented on the announcements made without his approval, highlighting Carlos Lupi’s speech on the reduction of payroll. Despite the criticism, he said the “thesis is a good one”.

“Lupi was with me and Rui Costa (Casa Civil). He said that it was difficult for retirees to pay their debts because they increased the indebtedness of retirees by 45%. a debt that he pays 45% of what he earns on debt. So it was necessary to lower the interest, but it was necessary to lower a little, because there is a law after we left the government that regulates the interest limit that can be, I don’t know if it’s 1.8 or 1.9”, said the president.

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, would have understood that he could keep the analysis of the topic at the meeting of the CNPS (National Social Security Council) held on Monday (13).

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