José Dirceu blames high interest rates and banks for household debt in Brazil.
Former Chief of Staff José Dirceu published statements on Instagram blaming the financial system and high interest rates for the indebtedness of Brazilian families. Dirceu, a historical figure in the Workers' Party, intensified his criticism of the Central Bank and financial institutions throughout 2025 and 2026.
The opinion of the former Chief of Staff contradicts the prevailing narrative of the Workers' Party, which attempts to demonize sports betting platforms as responsible for the increase in debt among the Brazilian population.
The Workers' Party member described the high interest rates as a "crime" and a "vice of rent-seeking." He commented on the Central Bank's decision to maintain interest rates at 14,75% to combat inflation. According to Dirceu, the current monetary policy hinders economic growth and benefits a minority.
In an article, the former minister argued that banks “have taken control of the economy and subjugate producers and consumers.” He questioned the Central Bank's lack of oversight of the financial market. Dirceu argued that current policy favors the “financial elite.”
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Impact on family budgets
In his social media post, Dirceu began his statement by saying: “I've been talking a lot with you about the indebtedness of Brazilian families. And there are people who try to blame Brazilians themselves for it. That's a joke. Let's tell the truth. The only problem is high interest rates, not borrowing money. And high interest rates don't fall from the sky, nor do they sprout from the ground. They are the result of a system that favors rent-seeking, banks, the financial market, a minority.”
The former minister highlighted the impact of interest and taxes on family budgets. Workers commit between 30% and 40% of their income to these expenses. In some cases, this percentage can reach half of their salary. Dirceu emphasized that Brazil has one of the highest interest rates in the world. Options such as credit cards, overdrafts, and revolving credit have rates considered excessive.
“Who pays this bill? The worker, you, your family. Between taxes and interest, many people commit 30, 40, sometimes even half of their income, of their salary. Almost everything you earn goes away before it translates into a better quality of life. Someone is profiting from this. Brazil has one of the highest interest rates in the world. Credit cards, overdrafts, revolving credit. These are absurd rates. You are late on a payment, you enter revolving credit, and the debt becomes a snowball,” he declared.
The Workers' Party member rejected the narrative that Brazilians are to blame for their own indebtedness. According to him, the financial system pushes people into debt with high interest rates. Banking institutions continue to break profit records. Dirceu stated that they are the most profitable banks in the world, while the population faces increasing financial difficulties.
“So, I think we also have to be careful, because betting companies may have become a scapegoat in this story [of indebtedness]. It would be important for the government to show clear data and studies on the real role of betting companies in this increase in indebtedness,” declared Juliana Inhasz, professor of economics at Insper, in an interview with CNN Brazil.
Official data released by the Secretariat of Prizes and Bets of the Ministry of Finance shows that in 2025, approximately 28 million Brazilians placed bets. This number represents 12,96% of the Brazilian population. The average bet per person was R$ 122 per month, according to SPA-MF data.
“And they still want to say it’s your fault. It’s not. It’s a system that pushes people into debt, with extremely high interest rates, the highest in the world. And then, it profits. They profit from that interest. Meanwhile, the banks continue to break profit records. They are the most profitable banks in the world,” he stated.
Proposals to address indebtedness
The former minister presented proposals to address the problem. The first measure would be to consistently reduce interest rates. This would depend on economic policy, decisions by the Central Bank, and pressure from society. The second proposal involves better regulating credit. Dirceu advocates establishing limits on abuses, increasing transparency, and protecting those who take out loans.
As a third measure, he advocated for increased income. The former minister argued that no one can escape debt with low income and a high cost of living. Finally, he proposed strengthening public banks and implementing policies for cheaper credit.
“And how do we deal with this? First, reduce interest rates consistently. This depends on economic policy, the decisions of the Central Bank, but also on societal pressure. Second, better regulate credit, put limits on abuses, provide more transparency, and protect those who take out loans. Third, increase income, because no one gets out of debt with low income and a high cost of living. And finally, strengthen public banks and implement policies for cheaper credit,” he explained.
Among the government actions cited by Dirceu is the reduction of smaller debts. For debts up to R$ 10, 90% of the amount will be reduced. Only 10% will remain for payment with controlled interest rates. The former minister justified the measure by stating that Brazil has already adopted similar initiatives at other times.
"The government is taking measures, including waiving 90% of smaller debts up to R$10. Only 10% will be paid with controlled interest. You know, Brazil has done this before, because the way things are, workers can't afford to pay the bill," he declared.
The Workers' Party member announced that the government will release funds withheld from the Guarantee Fund. The goal is to help workers pay off their debts and escape high interest rates. Dirceu ended his message calling on the population to mobilize against high interest rates. He asked people not to blame themselves for taking out loans.
“The government will do more; the government will release resources that were withheld from the Guarantee Fund to help you pay your debt and get out of high interest rates. Mobilize, fight against high interest rates. Don't blame yourself for taking out a loan. The problem isn't taking out a loan; the problem is high interest rates, and those who benefit are a minority, the financial system, the banks,” he concluded.
