Brazil plans to buy back family debts worth $29 billion at discounts of up to 90% — The Rio Times

In Brazil, the federal government plans to buy overdue family debts from banks and other creditors at discounts of up to 90%. President Lula announced the third phase of the Desenrola program on September 25, 2026, The Rio Times reports.

Scope and terms of the program

The program is expected to cover about 150 billion Brazilian reais, or approximately $29 billion, which represents roughly half of the debt that meets its eligibility criteria. Budget expenditures for the debt buyback are estimated at 15 billion reais, or about $2.9 billion.

The program is planned to include debt on revolving credit lines and credit card installments, as well as personal loans without payroll deductions. The original debt amount must not exceed 10,000 reais. The debt must be overdue for more than 720 and fewer than 1,645 days as of September 25, 2026.

Buyback procedure

Creditors will be selected through auctions, with preference given to bids offering the largest discount. Participants must transfer all claims that meet the program's conditions for a specific debtor, without selectively selling individual loans.

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After the state buys back the debt, the debtor will be able to repay it immediately at the discount received by the government or pay the remaining amount in installments with interest. The terms of installment payments are to be determined by Brazil's National Monetary Council.

Launch timeline

To implement the program, the government is preparing a temporary legislative act that is to amend the 2023 Desenrola law. Invitations for creditors to participate in the auctions are planned to be published in November 2026, and bids are to be submitted in December.

The selected bids are planned to be approved in January 2027. The first opportunities to repay debts at a discount or arrange installment payments are expected from February 2027.