Brazil Readies Family Debt Plan With Discounts Up to 80 Percent

Overview

• Finance Minister Dario Durigan, speaking Wednesday on GloboNews, said the plan should be announced in about 10 days and would pair steep write‑offs with refinancing of what remains.
• The proposal targets the costliest debts — credit card revolving, overdraft, and unsecured personal loans — which can charge about 435% a year on cards.
• Banks, fintechs, and card issuers would grant the discounts, while the government may back the new loans with guarantees in some cases, not direct subsidies.
• Sources in the financial sector estimate roughly R$107 billion in debts would qualify, after the Finance Ministry presented an initial design to industry groups this week.
• Unsettled pieces include a possible IOF tax break and interest caps by income, while the rollout is set to run on banks’ own platforms with basic financial education to help prevent new debt.