Business · Economy · 3 hrs ago
Brazil plans auction to buy up to R$90 billion in old debts
Brazil's government plans to auction purchases of old household and small-business debts through a new phase of its Desenrola debt-relief program.
The debts covered are between two and four and a half years old, and the program also includes individual microentrepreneurs.
Creditors could offer up to R$90 billion in debts for purchase, but the government has not decided how much it will accept.
The measure requires at least a 90% discount on the debts, and officials said the government could demand a larger reduction.
If the full R$90 billion is offered at the minimum discount, the government says the cost would be no more than R$9 billion.
The auction is expected in late November or early December, after the government reviews offers from financial institutions, with lower-income borrowers the main focus.
Brazil plans to hold an auction under its Desenrola 3.0 program to buy old debts, with an initial pool of up to R$90 billion.
Finance Minister Dario Durigan said the auction is expected between late November and early December.
The government will assess how much debt to buy after creditors submit their portfolios, and it may buy less than the full amount offered.
The program focuses on older debts owed by individuals and individual microentrepreneurs, with lower-income groups the priority.
The measure requires a minimum 90% discount on debts purchased, and officials said the maximum cost would be R$9 billion if R$90 billion in debt were offered.
- Who
- Brazil’s government, through the Finance Ministry, plans the auction; banks and other creditors will submit debt portfolios.
- What
- The government plans to auction for the purchase of old debts under Desenrola 3.0, potentially involving up to R$90 billion in debt.
- When
- The auction is expected between late November and early December 2026. The Finance Ministry said it would publish the program notice on October 22.
- Where
- Brazil.
- Why
- The program aims to address older debts that continue to trouble families and restrict access to credit.
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Finance Minister Dario Durigan said the government expected to hold the debt auction in November, potentially in early December.
The Finance Ministry said it would publish the Desenrola 3.0 notice for banks and creditors to submit debt portfolios within five business days.
The government expects to hold the auction, depending on the work required and further discussions.
- Potential debt pool
- Up to R$90 billion
- Minimum discount
- 90%
- Maximum estimated cost
- R$9 billion if R$90 billion in debt is offered
- Eligible debt age
- Two to four and a half years
- Priority group
- Lower-income borrowers, including individuals and individual microentrepreneurs
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What people are saying
Esta é uma política de Estado.
Se, no limite, esses R$ 90 bilhões de dívidas forem ofertados, de partida, a gente saberia que, no máximo, consumiria R$ 9 bilhões.