The recently elected government of President Luiz Inácio Lula da Silva (PT) is studying amnesty for the Auxílio Brasil loan debt for beneficiaries who took out the loan in 2022. To Estadão, Wellington Dias, Minister of Social Development, stated that the issue is being studied within the scope of a broader debt renegotiation program being prepared by the government.

When asked about the issue of amnesty for loan beneficiaries, the minister replied: “There is a proposal for amnesty for those in debt. Certainly, these are in debt.”

According to Dias, it is necessary to evaluate which path and which model to follow in the case of the social program that returns under the name Bolsa Família. “It’s not possible to say yet, as there are legal aspects that involve a bank”, said the minister.

The minister, who took on one of the most sought-after positions in the Lula government last Monday (2), said that the matter is handled jointly by his portfolio, Caixa Econômica Federal, Comptroller General of the Union (CGU), the Attorney General's Office of the Union (AGU) and the Ministry of Finance.

According to an investigation by “Estadão/Broadcast”, the issue of amnesty for Auxílio Brasil payroll loan debts was already being considered by PT parliamentarians, before Lula's victory, due to the fragile situation of the target audience.

According to the transitional government's final report, R$ 9.5 billion was granted in credit to beneficiaries of Auxílio Brasil and Benefício de Prestação Continuada (BPC). The document also highlights that 1 in every 6 beneficiaries withdrew their assigned credit. Caixa Econômica, one of the banks that offered the most amounts for the modality, was contacted by the report, but did not respond to any queries.

The Auxílio Brasil payroll loan was approved by Congress in June 2022 and was only regulated on the eve of the 2nd round of the presidential elections. However, experts pointed out possible risks when offering the loan modality, as the public were people who were in a situation of social vulnerability.

Large private banks and financial institutions, such as Banco do Brasil, were not interested in offering the credit line to the program's beneficiaries.

Former president Jair Bolsonaro (PL), had issued the Provisional Measure in March 2022, with immediate validation, however, he chose to wait for the arrival of the 2nd round of elections to launch the consigned credit.

According to the Central Bank of Brazil, in October 2022 alone, R$ 5 billion in consigned credit from Auxílio Brasil were released. The discount was made directly on the social benefit payroll, and could be 40% of the value of R$ 400 of Auxílio Brasil (up to R$ 160).

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