The government may authorize the withdrawal of 20% of FGTS (Brazilian employee severance fund) to pay off workers' debts.

The Ministry of Finance is studying the creation of a debt renegotiation program that will allow workers to withdraw part of their FGTS (Severance Indemnity Fund) balance. Minister Dario Durigan stated in an interview with Folha de S.Paulo that the withdrawal limit will be 20% of the available amount in the individual account. The initiative will benefit workers with incomes up to R$ 8.105, equivalent to five minimum wages.

The measure is expected to release R$ 7 billion. The program combines three elements: partial withdrawal from the fund, discounts offered by financial institutions, and a government guarantee to refinance the remaining balance with an agreed or limited interest rate. According to Folha, the government's measures will limit people from taking advantage of the opportunity to participate in the debt renegotiation program using FGTS funds.

The package includes specific lines of credit for truck drivers, ride-hailing app drivers, and taxi drivers. Sectors such as construction and fertilizer production will also receive support.

Durigan took over the ministry less than a month ago. The minister explained that indebtedness fell after the first Desenrola program and the beginning of the Selic rate cut in August 2023. At the end of 2024 and during 2025, the scenario changed with the increase in the interest rate.

“We are dealing with concrete problems,” Durigan declared. The minister denied that the measures are electioneering. The initiative is a demand from President Lula.

The government will use the FGO (Operations Guarantee Fund) to guarantee against potential default in the refinancing operation. Durigan explained that there is no direct public spending. "The idea is that the financial institutions themselves will reduce the debt and there will be refinancing with a lower interest rate. And then the government comes in guaranteeing against potential default in this second operation," he stated.

The minister clarified that the government will not pay people's debts. The guarantee will allow banks to offer lower interest rates.

There will be a limitation on the ability of people who join the program to continue betting . The government is working with a six-month quarantine period for betting. The president will make the final decision.

The 20% withdrawal figure is being discussed because it has a contained impact on the fund. The exact minimum discount range that banks will grant has not been specified.

Durigan stated that the current government is leaving behind a balanced situation in the economy and public finances. This contrasts sharply with the "debacle" that occurred in 2022 when Jair Bolsonaro sought re-election. "We are not leaving any ticking time bombs," the minister declared.

The goal of these measures is to encourage sustainable borrowing by individuals and to implement structural measures. The government's expectation is to provide a stimulus for this shift.