Auxílio Brasil’s payroll-deductible credit is giving people something to talk about. After several controversies, instability and discussion about this type of credit, Caixa Econômica Federal reported last Monday night (24) that it had frozen the release of the requested credit for 24 hours.

In short, the suspension is in accordance with the guidance of the TCU (Federal Audit Court). The calculation of this period by Caixa is the same as the interval that the Court of Auditors gave, for the explanation about the Auxílio Brasil loan. According to the TCU, during this explanation period, it would be interesting to suspend the granting of loans.

See what Caixa said in a note:

“In the contracts signed today, CAIXA informs that there is no forecast for the release of the financial values related to these orders within the next 24 hours, automatically complying with the recommended prudence”.

In short, the request for Caixa to provide further clarification on the Auxílio Brasil loan came from the TCU Minister, Aroldo Cedraz.

Furthermore, Cedraz asked Caixa that, if it deems necessary, it can immediately suspend the granting of new loans in this modality, out of caution. According to the minister, this would be a measure of concern for public interests, until the Court analyzes the documentation to be sent and considers it capable of demonstrating that the irregularities suggested in the representation are not present”.

The ministers' request is part of the procedure opened at the request of the Public Ministry of Accounts, which asked the Court to analyze all the details involving the procedures adopted by Caixa Econômica for granting the loan granted to the beneficiaries of Auxílio Brasil.

In fact, the deputy attorney general of the TCU, Lucas Rocha Furtado, denounced an alleged use for purely electoral purposes and to the detriment of the banks. 

Furtado also requested that the TCU institute a precautionary measure (urgent and provisional) in which it determines that Caixa “refrain from making new loans granted to beneficiaries of the Auxílio Brasil program until this Court of Auditors gives a definitive opinion on the matter”.

Finally, it is worth highlighting that minister Aroldo Cedraz and the TCU have been under political pressure since last week, so as not to block the credit granted before the 2nd round of the elections. This is due to the fact that the Auxílio Brasil consignment was used by Jair Bolsonaro's (PL) campaign as a “political asset” for his re-election.

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