Lula signs provisional measure that creates Desenrola Brasil 3.0 for debt renegotiation

President Luiz Inácio Lula da Silva signed this Friday (25) a provisional measure that creates the third phase of the debt renegotiation program for individuals, Desenrola Brasil 3.0.

The main novelty is that the Union will be able to buy, at auction, portfolios of debts that have not been paid and pass on the discount obtained in the operation in full to the debtor.

Through the program, bank and non-bank debt portfolios of up to R$10,000 can be purchased at auction, considering the original value, with defaults exceeding 720 days and less than 1,645 days, the equivalent of approximately two to four and a half years.

The government's expectation is that up to R$150 billion in debt will be eligible for purchase by the Union. Considering the partial adhesion of creditors and debtors, the estimate is that R$75 billion will be effectively renegotiated. The program could benefit up to 15 million people.

The minimum expected discount is 90%. Thus, if a portfolio is acquired by the Union with this discount percentage, the same discount will be passed on to the debtor. The balance may be paid in cash or in installments, with interest added, under conditions that will still be defined by the National Monetary Council.

How it will work

Interested creditors will participate in auctions, which may be held in batches and separated according to the nature of the debts, bank or non-bank. Proposals will be ranked by the highest discount offered.

The creditor must deliver all of each debtor's eligible credits, without the possibility of selecting only part of the debts.

The operation may rely on Caixa Econômica Federal and Banco do Brasil, including through investment funds in credit rights in which the Union participates as a shareholder.

Debt

Data from the National Treasury show that, in August this year, the stock of defaulted debts registered at credit bureaus, up to five years late, reached R$592 billion. There were 83.9 million negative people, with an average of four debts per person and an average value of R$7,000 in debts per person.

Of the stock, around 55% corresponds to non-bank debts, such as water, electricity, telephone and retail debts. Debts for water, electricity and energy services represent 20% of the total, according to data presented during the signing of the provisional measure.

History

The third phase continues the two previous stages of the program, which, according to the government, have already reached 25 million people.

In the first phase, there were more than 8 million renegotiation operations, with R$53 billion in debts renegotiated and 15 million people and families served.

The second phase recorded more than 5.5 million operations, R$22 billion in renegotiated debts and 10 million people and families served.

Timeline