Government studies releasing FGTS to pay debts of indebted families

The Minister of Finance, Dario Durigan, said that the government is considering allowing Brazilians to withdraw part of the FGTS to pay off debts. The possibility is being evaluated within the scope of the credit package, articulated as part of the plan to reduce family debt and encourage debt renegotiation.

The statement came after the minister participated in a lunch with the Workers’ Party bench in the Chamber. “We are evaluating this with the Ministry of Labor, which is concerned about the health of the Guarantee Fund. If we think it is reasonable to use it to refinance some debts, this will be accepted”, he stated.

Durigan avoided anticipating in detail the measures that were discussed with President Luiz Inácio Lula da Silva (PT), but reported that the government is also studying ways to limit future debt, including actions to contain spending on betting on bets.

On March 26, Lula stated that the increase in family debt is “a problem” that ends up overshadowing the growth of the country’s economy and, therefore, he asked Durigan for a solution. The president also requested studies from the Central Bank and the Ministry of Finance to reduce credit card interest rates.

One of the proposals evaluated by the government is to combine all debts into one, which would be “replaced” by a new one, with lower interest rates and discounts. If it comes to fruition, the idea foresees that the entire renegotiation process will be carried out directly with the banks, which would have the Operations Guarantee Fund as a guarantee.

Family debt has grown in the last year and generated criticism of the federal government’s conduct. According to data from the National Confederation of Commerce in Goods, Services and Tourism (CNC), the proportion of families with debt rose from 80.2% in February to a record 80.4% in March.