Lula's new debt-relief push makes the state a buyer of bad loans

President Luiz Inácio Lula da Silva signed a provisional decree on September 25 creating Desenrola 3.0, the third edition of his household debt-relief program, and this version puts the federal government directly into the market for defaulted debt. The state will buy portfolios of unpaid loans and bills at auction, at a discount of at least 90%, and pass the entire discount on to the debtor. Brazilians vote in the first round of the general election on October 4.