Government considers imposing interest rate cap on payroll loans for workers, says Haddad.

247 - The federal government is monitoring the initial results of the Workers' Credit program to decide whether to set a limit on the interest rates charged by banks. This information was confirmed by Finance Minister Fernando Haddad in an interview with the YouTube channel Nath Finanças, according to [source missing]. UOL

Created to facilitate access to credit for workers with formal employment contracts, the program allows for loans secured by the balance of the Severance Indemnity Fund (FGTS). However, the possibility of imposing a cap on interest rates is still being analyzed. "We will monitor the program's progress, and then these two issues, [the use of] the FGTS and [whether there will be] a cap, we will discuss based on this learning," explained Haddad.

Currently, the average interest rate for payroll-deducted loans in the private sector is around 55,6% per year, according to data from the Central Bank. The government wants to understand if the level of competition in the market justifies a limitation similar to that already in place for payroll-deducted loans for INSS (Brazilian National Social Security Institute) beneficiaries and public servants. "These two questions were left to wait until the first few months of the program for us to be able to answer them. If there is a lot of competition, does it make sense to have a ceiling like the one for INSS payroll-deducted loans and the one for public servants?", the minister questioned.

In the interview, Haddad highlighted that there are specific variables in this credit model that differentiate it from the one applied to retirees and civil servants, and therefore, the government decided to launch the program without initial restrictions.

“What was agreed upon six months ago? We're going to launch the program, we're going to monitor the program's progress, and then these two issues, FGTS and the spending cap, we'll discuss them based on this learning experience. So, we're in the learning phase, but I'm not saying it's something that will happen in three years, I'm saying it's something that will happen in three months,” he said.

Access to Employee Credit is exclusively for formal employees governed by the Consolidation of Labor Laws (CLT). Applications can be made through the Digital Work Card app or directly with authorized banks and financial institutions.

Despite the program's objectives, the risk of increased indebtedness worries representatives of the employer sector. The Brazilian Association of Supermarkets (Abras) had already expressed concern in May about the high interest rates on private payroll loans and their impact on employees' income. In response, the government authorized the portability of credit contracts: workers can transfer old loans to institutions that offer more advantageous conditions.

During the interview, Haddad also mentioned another area of ​​government action to recover lost resources: the taxation of sports betting. According to him, approximately R$ 40 billion left the country without any tax collection. “We inherited chaos. Bolsonaro lost at least R$ 40 billion in taxes that should have been collected; they were given to the betting companies, which sent that money out of Brazil,” stated the minister. “That's about R$ 40 billion a year lost in gambling, between what is deposited and what is paid out in prizes. That's according to the data they provided. It could be more, but it won't be less,” Haddad added.