Brazil Plans to Buy Up Old Household Debts at Up to 95% Off Before Vote
The government plans to buy defaulted family debts at discounts of up to 90%, targeting about R$150 billion in eligible loans, officials said.
- On Friday, September 25, 2026, President Luiz Inácio Lula da Silva launched Desenrola 3.0, a federal program to purchase defaulted family debt from creditors at discounts of up to 90%.
- A National Treasury survey revealed defaulted debts totaled R$592 billion in August 2026, affecting 83.9 million Brazilians with negative credit records; around 55% consists of non-bank debt like water and electricity bills.
- The government plans to spend R$15 billion purchasing up to R$150 billion in eligible debts, targeting credit-card balances and personal loans without payroll deduction overdue between 720 and 1,645 days.
- This announcement lands less than ten days before the first round of the presidential election on October 4; Opposition figures labeled the timing "electioneering," while the government frames it as fulfilling a 2023 commitment.
- Creditor auctions begin with a call for proposals in November 2026, with the government expecting first discounts to reach families starting in February 2027, pending approval of the provisional measure.
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29 Articles
The Brazilian government plans to buy back overdue household debts of up to $28 billion from banks, paying about $2.9 billion for them at a discount of up to 90-95%. After that, the debtors' credit history will be cleared, but the debts themselves will not be written off — they will need to be repaid to the state in a much smaller amount and on more favorable terms.
Eligible debts are revolving credit card and parcel and non-sheet personal credit, with a delay of 2 to 4.5 years
Government to acquire and restructure debts
Brazil Plans to Buy Up Old Household Debts at Up to 95% Off Before Vote
With household loan defaults at a record 5.8% and a presidential vote on 4 October, Lula is set to unveil a plan for the Treasury to buy up old consumer debts at discounts of up to 95%. Who qualifies, the cost and the start date are not yet official.
Measure was announced with the prohibition of online betting platforms, in another initiative within the petist's effort to attract votes
The government of President Luiz Inácio Lula da Silva prepares to launch on Friday (25) the new program for the reduction of the indebtedness of families. The launch must happen tomorrow afternoon, in São Paulo. Lula yesterday asked the economic team to accelerate the final design of the measure. Material exclusive to subscribers. To have full access, access the link of the matter and register.
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