President Luiz Inácio Lula da Silva requested, on June 30, 2024, that the Central Bank (BC) and the Ministry of Finance carry out a detailed analysis of the rates applied to the revolving credit of credit cards. This measure comes amid a rise in interest rates for this modality, which jumped from 424.5% per year in January to 435.9% in February 2024, an amount extremely higher than the Selic rate, currently set at 14.75% per year.
Revolving credit, which includes the pre-approved use of the card limit and also cash withdrawals on the credit function, has its interest rates capped by the federal government at 100% of the initially unpaid amount. Despite this, the disparity between this rate and the Selic rate worries authorities, as it can compromise the budgets of Brazilian families. To reduce this impact, the BC and the Ministry of Finance were instructed to study mechanisms that reduce the financial costs of this modality.
Moreover, the government has established rules obliging financial institutions to offer installments or alternatives to pay off revolving debt within 30 days in cases of default. However, these measures are still considered insufficient to curb the high interest rate, placing family indebtedness on the current political and economic agenda.
Gleisi Hoffmann, Minister of Institutional Relations, confirmed in an interview at the Planalto Palace that the requests were formalized to the Central Bank and the Ministry of Finance. She emphasized that these studies are part of a broader effort by the federal administration to address the increase in indebtedness of Brazilian families and companies.
President Lula has been holding meetings with ministers and advisors to discuss the topic of indebtedness from multiple aspects, both economic and political. The latter, in fact, gains relevance given election polls indicating social concerns about the financial situation of popular layers. In this scenario, political opponents, such as Senator Flávio Bolsonaro (PL-RJ), are cited as agents opposed to credit intervention proposals.
Dario Durigan, Minister of Finance, is responsible for coordinating proposals that may have an immediate impact on the cost of credit. Among the initiatives under study are credit lines for the acquisition of sustainable cars aimed at app drivers and taxi drivers, operated by the National Bank for Economic and Social Development (BNDES). This measure aims to offer more affordable financial alternatives for these professionals.
The expansion of the truck fleet renewal line launched at the end of 2023 is also under analysis, in addition to the creation of a program allowing energy distributors to postpone tariff adjustments. These actions aim to mitigate indebtedness in the productive sector and prevent increased expenses from negatively impacting family finances.
In parallel, the government has initiated negotiations with Caixa Econômica Federal to expand credit for both individuals and legal entities, seeking to ease access conditions and reduce the cost of indebtedness. These initiatives align with the current economic policy, which tries to balance inflation control with growth stimulation.
In general, the revolving credit agenda is part of a larger effort to deal with the complexity of indebtedness in Brazil. The conclusion of the studies will be the responsibility of the Central Bank and the Ministry of Finance, who will present their recommendations to expand access to fairer financial modalities.
The expectation is that the involved agencies will complete the analysis in the coming weeks, enabling the implementation of measures that can contain high interest rates and provide relief to Brazilian consumers.
