ECONOMY
Lula rolls out bold debt renegotiation program
Will debt relief finally bring Lula electoral dividends? Photo: Ricardo Stuckert/PR
President Luiz Inácio Lula da Silva on Monday signed a provisional decree launching the new version of his government’s debt relief program Desenrola (a Portuguese pun alluding to untying the debt knot). We had anticipated most of the main provisions last week, including a 90-day national debt renegotiation drive offering discounts of up to 90% on overdue personal liabilities.
👉 Why it matters. With a presidential election looming, Lula's approval ratings sagging and his challenger polling in the lead, the program is as much political as it is economic.
Several of the government’s economic feel-good measures have failed to translate into political gains, and the administration’s diagnosis is that high household debt has eroded purchasing power. With this program, Lula is betting he can change that.
The economic backdrop is genuinely alarming. Household debt-to-income, excluding mortgage loans, reached…
🔒 This was a free preview; the rest is behind our paywall
Don’t miss out! Upgrade to unlock full access. The process takes only seconds with Apple Pay or Stripe. Become a member.
Why you should subscribe
We’re here for readers who want to truly understand Brazil and Latin America — a region too often ignored or misrepresented by the international media.
Since 2017, our reporting has been powered by paid subscribers. They’re the reason we can keep a full-time team of journalists across Brazil and Argentina, delivering sharp, independent coverage every day.
If you value our work, subscribing is the best way to keep it going — and growing.
Interested in advertising with us? Get in touch.
Need a special report? We can do it.
Have an idea for an article or column? Pitch us
