President Luiz Inácio Lula da Silva’s economic team plans to finalize by the end of the month the design of a debt-renegotiation program for borrowers who are current on their payments. It will be an additional round of the new “Desenrola Brasil” debt-relief program, this time aimed at people who are up to date on their debts but paying very high interest rates. The government expects to launch this phase in June.
The 2026 version of Desenrola was announced by the government five months before the election, in an attempt to reverse the decline in President Lula’s popularity. Since the start of the year, Lula had been pressing his team to take steps to reduce household debt.
Officials in the presidential palace believe…