The Brazilian government is advancing a new debt-relief initiative targeting old, uncollectible debts, with the Ministry of Finance planning an auction model to buy back unpaid obligations at steep discounts. This follows previous programs like Desenrola, which focused on renegotiation rather than direct debt purchase.
The Ministry of Finance, led by Minister Dario Durigan, is finalizing a program to address long-standing household debts that creditors have largely abandoned. The plan involves auctioning these debts to third parties at significant discounts, allowing the government to repurchase them and clear borrowers’ credit records. This approach differs from the Desenrola initiative, which required individual renegotiation through a centralized platform.
According to O Globo, the proposed program would sidestep individual negotiations by having the government organize auctions for old debts. We will propose to the president that he create a policy to clean names, especially for the oldest debts, which banks and service companies have already lost hope of collecting, Durigan stated in an interview with EXTRA. The goal is to reduce the burden on consumers whose names remain blacklisted despite improved financial situations.
Governo estuda novo programa para eliminar dívidas antigas dos
The model aims to minimize fiscal impact by focusing on debts that have lost value for creditors. We’re moving toward a model where we auction and facilitate the purchase of these debts with a high discount to avoid significant public spending, Durigan explained. This contrasts with the first two Desenrola phases, which relied on consumer participation in platform-based renegotiations.
The new program, still in development, is set to be presented to President Luiz Inácio Lula da Silva in the coming days, as reported by O Globo. The initiative focuses on debts that have become impagable due to years of interest accumulation, maintaining consumers in a state of negative credit history despite improved economic conditions. The pandemic left a legacy of debt, and we need recurring policies to address it, Durigan said, citing the economic strain of the pandemic and high interest rates, which remain at 14% annually.
The Central Bank (BC) is simultaneously preparing measures to mitigate risks from escalating household debt, which reached 49.8% in June 2026. A Metropoles.com report highlights the BC’s focus on curbing high-cost credit products like credit card rotatory and unsecured loans. We aim to ensure a fair competitive environment and prevent institutions from taking excessive risks, said BC President Gabriel Galípolo during a Febraban Tech event.
The BC plans to raise capital requirements for high-risk lending and improve transparency in credit practices. These measures seek to promote timely risk recognition, gradual capital accumulation, and more sustainable credit conditions, the Central Bank stated in a communique. The agency also emphasized addressing the role of expensive credit in driving household debt, which has surged since the pandemic.
BC prepara medidas para enfrentar endividamento das famílias
The new program emerges amid persistent economic challenges, with inadimplência rates hitting 5.8% in July, the highest since March 2011. Durigan attributed the crisis to pandemic-era financial strain and high interest rates, noting that the pandemic left a legacy of debt, and we need recurring policies to address it.
Unlike the Desenrola program, which required consumer participation in renegotiation platforms, the new model eliminates individual engagement. In Desenrola 1, people had to enter the platform and accept offers. Now, we’re moving to an auction system that doesn’t require personal involvement, Durigan explained. This change aims to streamline the process and reduce administrative burdens.
Governo Lula prepara novo programa para aliviar endividamento da
The program’s name remains under discussion, as officials seek to distinguish it from previous efforts. While the Desenrola initiative focused on renegotiation, the new plan emphasizes debt purchase, reflecting a strategic shift in addressing financial distress. The government plans to present the proposal to President Lula in the coming days, as outlined in the sources.
The Ministry of Finance’s approach also seeks to avoid significant fiscal strain by targeting debts that have lost value for creditors. The idea is to focus on portfolios that have lost value for banks and service companies, Durigan said, emphasizing the need to reduce the cost for public coffers. This aligns with the broader goal of ensuring the sustainability of the financial system while addressing household debt burdens.
The Central Bank’s measures include increasing the Fator de Ponderação de Risco (FPR) for high-risk credit lines, a move that would require banks, including fintechs, to maintain higher capital reserves. This strategy aims to make credit less accessible for institutions taking on excessive risk, thereby curbing the growth of high-cost debt products. The BC also plans to mandate clearer disclosure of credit terms to ensure consumers are better informed about their obligations.
These initiatives reflect a dual approach: the Ministry of Finance’s debt auction model to address historical imbalances, and the Central Bank’s regulatory actions to prevent future instability. Both efforts underscore the government’s recognition of the pandemic’s long-term economic impact and the need for systemic solutions to household debt. As the new program nears implementation, its success will depend on precise execution and coordination between regulatory bodies and financial institutions.