BRASILIA, May 4 (Reuters) - Brazil relaunched on Monday a broad consumer debt relief program first introduced in 2023, to cut interest burdens and boost disposable income ahead of President Luiz Inacio Lula da Silva's reelection bid in October.
The new "Desenrola" program targets earners of up to five times the minimum wage per month with discounts ranging from 30% to 90%, Finance Minister Dario Durigan said during an event at the presidential palace.
Lower interest rates on renegotiated debts will
be enabled by a government guarantee backed by its Operations Guarantee Fund (FGO), which will receive up to 5 billion reais ($1.01 billion) from the Treasury.
Durigan said the FGO currently holds about 2 billion reais and will also be topped with funds left unclaimed in banks at between 5 billion reais and 8 billion reais.
"What we are doing is mobilizing resources that are poorly used and inefficiently parked in the financial system through a private fund to improve the system itself, benefiting account holders and people with debts," Durigan told a press conference.
Brazil's central bank estimates that so-called forgotten funds currently total about 10.6 billion reais.
Durigan said the government will publish a public notice setting a deadline for individuals to reclaim their money and will maintain 10% of the funds to cover any future court rulings in favor of claimants, "ensuring no one is harmed."
The same FGO mechanism was used in the original Desenrola program, though federal guarantees at that time were limited to low-income borrowers earning up to two minimum wages.
The broader target audience comes as Lula pushes measures to ease pressure on household budgets ahead of the presidential race, with his lead over his main rival, Senator Flavio Bolsonaro, narrowing to a statistical tie in runoff polls.
($1 = 4.9510 reais)
(Reporting by Marcela Ayres; Editing by Gabriel Araujo and Bill Berkrot)
