Government plans to grant tax benefits to attract banks to Desenrola.
Financial institutions will be able to calculate presumed credits based on the value of program financing they provide without government guarantees.
BRASILIA (Reuters) - The Ministry of Finance should release a tax benefit to stimulate the banking sector. Renegotiating family debts in the Desenrola program."Two sources involved in drafting the measure told Reuters."
According to the initiative's design, financial institutions will be able to calculate presumed credits based on the value of program financing they provide without government guarantees.
Using tax credits to offset tax payments frees up capital for banks, enabling them to increase lending.
“The bank has tax benefits that, while not realized, tie up its capital. (...) By processing these credits, it manages to leverage its capital,” said one of the sources, on condition of anonymity.
The Desenrola program will be divided into two tiers. The first will cover debts of up to 5 reais for people with incomes up to two minimum wages. This group will have approximately 10 billion reais in government guarantees, which will provide security for banks and allow for lower interest rates.
The second tier will have no income or debt renegotiation limit, but there will be no guarantee with public funds, which still generated uncertainty about the viability of the operations for financial institutions.
On Monday, Finance Minister Fernando Haddad confirmed that the use of tax credits is included in the draft provisional measure to create the Desenrola program, which was presented to President Luiz Inácio Lula da Silva. The measure has not yet been made public.
"We are releasing this tax credit because the creditors are interested in expanding the Desenrola program beyond the subsidized brackets," the minister said at an event hosted by the newspapers O Globo and Valor Econômico.
>>> Desenrola will be launched after the development of its operating system, says Haddad.
According to the two Finance Ministry officials, the mechanism should be similar to that adopted in the Credit Incentive Program, implemented in 2021 to encourage the release of financing to micro and small businesses. The difference is that now the loans will be granted to individuals.
According to a third source following the matter, the tax credit mechanism could increase the interest of economic agents in participating in Desenrola, but, according to this source, the estimated values of the benefits still depend on a "better design" of the program.
As Reuters reported, obstacles in negotiations with the private sector and technical difficulties have indefinitely delayed the launch of Desenrola.
According to Haddad, in the segment of the program guaranteed by the government alone, approximately 37 million people are expected to renegotiate around 50 billion reais in debt.
One source emphasized that the "Desenrola" program will not be continuous, but rather a one-off action to help families with negative credit histories. To avoid encouraging people to stop paying taxes, a cutoff date will be established for considering which debts will be eligible for renegotiation.
"The program provides for these two types of differentiated lines of credit, one via guarantee and one via this capital leverage to reach a greater number of families, who can regularize obligations that have generated negative credit ratings up to the end of last year," he said.