No agreement, government postpones decision on interest ceiling for Auxílio Brasil

BRASÍLIA – Differences over the setting of an interest ceiling delay the regulation of the consigned loan operation to program beneficiaries Brazil aid.

The matter has been the subject of daily meetings in the Ministry of Citizenship. Among the technicians, the assessment is that the payroll loan aimed at such a vulnerable population needs a limitation of the interest charged by banks. The defense in the ministry is that the interest limit is set at least equal to that of the INSS, of 2.14%. The Minister of Citizenship, Ronaldo Vieira Bento, defends internally the establishment of an interest ceiling.

In July, the Estadão revealed that banks and finance companies were already pre-registering loans with interest of up to 86% per year – much higher than the rates of other types of payroll loans practiced in the market.

The matter has been the subject of daily meetings at the Ministry of Citizenship.  Among the technicians, the assessment is that the payroll loan aimed at such a vulnerable population needs a limitation of the interest charged by banks
The matter has been the subject of daily meetings at the Ministry of Citizenship. Among the technicians, the assessment is that the payroll loan aimed at such a vulnerable population needs a limitation of the interest charged by banks Photograph: Marcello Casal Jr/ Agência Brasil

The creation of a payroll loan guaranteed by Auxílio Brasil is a controversial measure, considered by specialists in the social area as a stimulus to the indebtedness of people who already live in conditions of high vulnerability and food insecurity.

Representatives of legal entities, consumer protection and personalities from various sectors even signed a note “In Defense of the Economic Integrity of the Vulnerable Population” asking for the postponement of the payroll.

According to the institutional director of the Brazilian Basic Income Network, Paola Carvalho, this Tuesday, there was a debate at the National Council for Social Assistance on the subject. “We asked that the Ministry of Citizenship be called. They are giving hope to the beneficiaries. Bank agencies are pre-registering and do not activate the loan. I believe there is a dichotomy between them,” she says. For her, the situation is very serious because it generates hope in the population since March. “Families are in debt and struggling to maintain the most basic things; Many families will go into more debt to be able to pay basic household bills,” she says.

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The director assesses that the delay is an electoral strategy of the campaign for the reelection of the president. She believes the loans should come out closer to the period between the first round and the second round, when people will be receiving the money.

Banks already have a list with a pre-registration of interested parties. as anticipated the Estadãolarge banks decided to stay out of the payroll loan offer.

Last August 12, President Jair Bolsonaro and the Minister of Citizenship, Ronaldo Bento, signed a decree regulating the payroll. But the start of the release of operations depends on the regulation of complementary rules by the Ministry of Citizenship, which have not yet been published.

Contrary to what happened in August, when the Auxílio Brasil of R$ 600 began to be paid on the 9th, the Ministry of Citizenship will not advance payment in September. One of the reasons given is the difficulty of operationalizing the anticipation in view of the need to verify this month of two conditions of the social program: school attendance and vaccination of children.

For October, the month of the elections, the government will bring forward the schedule. The government’s idea is to transfer the payment schedule to the first fortnight of the month. In September, the calendar starts on the 19th.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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