The rate exceeded 400%, but Lula da Silva’s Government established a limit of 100% in order to facilitate the return to the market of a third of its population.
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In Brazil, a ceiling was established on credit card interest, considering the high rate of defaulters. According to the rule created in the Government of Luiz Inácio Lula da Silva, the limit will be 100% of the original amount of the debt.
Thus, if a person owes US$200, the payment with interest cannot be more than US$400. It is worth noting that the average annual interest rate, according to the Central Bank of Brazil, is 431%.
Fernando Haddad, Minister of Finance of the South American giant, explained that this rule “is an important step to correct the distortions of the Brazilian banking system,” since debts stretched to amounts that were impossible for citizens to meet, reports Efe.
This policy of the president Lula da Silvacontemplated in Desenrola Brasil, is committed to the renegotiation of debts of defaulters in order to reduce their financial commitments and facilitate their reintegration into the credit market. It was approved by the National Monetary Council, made up of the economic ministers and the president of the Central Bank, Roberto Campos Neto.
According to the Brazilian Government, as of December 30—when the first stage of the program ended—debts of US$6.6 billion were renegotiated and more than 11 million people benefited.
Among other decisions of the Lula administration, the recent increase in taxes on the investments of the richest stands out, with which it is expected to raise more than US$4,000 million that will help reduce poverty.
Trained at the Jaime Bausate y Meza University. In constant learning. Economics is the branch of journalism closest to the people and my duty is to be a bridge to information.
Source: Larepublica
Alia is a professional author and journalist, working at 247 news agency. She writes on various topics from economy news to general interest pieces, providing readers with relevant and informative content. With years of experience, she brings a unique perspective and in-depth analysis to her work.
