Development will benefit families with debts of up to R$ 5 thousand

The small debt renegotiation program, explained Haddad, will be limited to families earning up to two minimum wages and owing up to R$5,000. Desenrola, informed the minister, should benefit around 30 million people.

According to the minister, Desenrola will take about a month to come into force because of bureaucracy. In recent months, the launch of the program has been postponed several times because B3, the Brazilian stock exchange, was developing the computer system for creditors to adhere to renegotiations. “There is a series of bureaucratic measures to be taken until the opening of the creditors’ system”, justified the minister.

Despite the program being linked to the will of creditor companies, the minister said he was optimistic about Desenrola. “The program depends on the adhesion of creditors, since the debt is private. But we understand that many creditors will want to participate in the program giving good discounts precisely because of the liquidity they will obtain, because it will be guaranteed by the (National) Treasury”, commented Haddad.

In exchange for participating in the negotiation, the creditor company will have a guarantee from the Treasury in case the debtor is unable to honor the commitments. For Haddad, the fact that the Treasury covers any defaults will encourage creditors to offer the maximum possible discount to debtors.

“The program will work like an auction. The idea is that the creditor gives the biggest discount possible, because he has an incentive for that (the National Treasury guarantee)”, explained the minister.

According to Haddad, official banks, such as Banco do Brasil, will participate in the program. He said that the financial institution considered the modeling of Desenrola to be positive and estimated that the program will be successful. The minister stated that private banks are also interested in joining Desenrola.