Desenrola 2.0, Brazil’s expanded household-debt renegotiation programme, took effect on Tuesday, May 5, 2026, after President Luiz Inácio Lula da Silva signed Provisional Measure 1.355, published in the Diário Oficial the same morning.
The 90-day window grants discounts of up to 90 percent on overdue balances of up to 15,000 reais (around 2,970 dollars) per institution, with interest capped at 1.99 percent a month and access to as much as 8.2 billion reais (around 1.62 billion dollars) of FGTS labour-fund balances.
Government data and Febraban estimates suggest the package may reach 27.7 million borrowers carrying 97.3 billion reais (around 19.27 billion dollars) in arrears, with the Central Bank flagging eligibility of more than 100 million people across all programme tracks.
Key Points
— Discounts run from 30 to 90 percent, with rotating credit cards eligible for 40 to 90 percent and personal loans for 30 to 80 percent.
— Eligibility covers Brazilians earning up to five minimum wages, or 8,105 reais a month, with arrears between 91 and 720 days on contracts signed before January 31, 2026.
— Workers may withdraw 20 percent of their FGTS balance or up to 1,000 reais, whichever is greater, to settle renegotiated debts.
— Programme tracks target 20 million family contracts, 15 million payroll loans, 700,000 civil servants, 1.5 million FIES students and 800,000 rural producers.
— Adherents are blocked from online betting platforms for 12 months under the new rules.
What the Government Approved
The Rio Times, the Latin American financial news outlet, reports that Desenrola 2.0 organises five tracks: Desenrola Famílias, Desenrola Empresas under Pronampe and Procred, Desenrola Fies for federal student loans, Desenrola INSS for retirees on payroll lending, and Desenrola Rural for family farmers. Pagamento à vista buyers receive an extra 12 percent discount on principal, and balances may be split into as many as 150 instalments while preserving the discount on interest and penalties. The Fundo Garantidor de Operações backs the renegotiated loans.
Pronampe credit ceilings rose from 250,000 to 500,000 reais per borrower, and Procred limits expanded from 30 to 50 percent of revenue, capped at 180,000 reais. INSS payroll-lending caps fall from 45 to 40 percent of income, with a gradual reduction toward 30 percent at two points a year. Fies students outside the CadÚnico register can secure cuts of up to 77 percent, while those inside reach 99 percent.
FGTS Withdrawals and Triggers
A separate amendment to Provisional Measure 1.331 frees an additional 7.7 billion reais of FGTS balances blocked under the saque-aniversário scheme for workers dismissed without cause between January 2020 and December 2025. Those funds reach affected accounts through the FGTS app by May 26, 2026. Workers using FGTS to clear renegotiated debt forfeit access to the saque-aniversário withdrawal until they replenish the amount used.
Why It Matters for Markets and Politics
Brazil entered May 2026 with public debt at 80.1 percent of GDP, the highest in the data series, and household debt at roughly 49 percent of disposable income, according to Central Bank figures. Average bank lending rates reached 32.8 percent a year in January, the highest since November 2016, and personal loan rates climbed to 38 percent. The Selic policy rate sits at 14.50 percent after a 25 basis-point cut on April 29.
The political timing matters. AtlasIntel’s late-April poll of 5,008 voters showed a tie between Lula at 47.8 percent and Flávio Bolsonaro at 47.5 percent in a hypothetical second round of the October 2026 election. The original Desenrola programme launched in 2024 reached 15 million people and renegotiated 53 billion reais of debt, but consumer balance sheets re-leveraged through 2025, motivating a wider second round.
| Programme parameter | Value |
|---|---|
| Programme duration | 90 days from May 5, 2026 |
| Per-institution debt cap | BRL 15,000 (~USD 2,970) |
| Discount range | 30% to 90% |
| Maximum interest rate | 1.99% per month |
| FGTS balance available | BRL 8.2 billion (~USD 1.62B) |
| Estimated stock targeted | BRL 97.3 billion (~USD 19.27B) |
| Maximum instalments | 150 |
How It Reframes Brazil’s Credit Cycle
Allianz Trade reported a 28 percent rise in Brazilian corporate insolvencies in 2025 and projects a further 5 percent increase in 2026. Serasa Experian counted roughly 81.7 million indebted individuals in March 2026, the highest since 2012, with 557 billion reais (around 110 billion dollars) in defaulted balances.
For Lula’s economic team led by Finance Minister Dario Durigan, Desenrola 2.0 is meant to relieve household balance sheets without breaching the fiscal framework, since the FGO guarantee and FGTS use limit direct Treasury exposure. Construtoras and consumer-credit lenders saw share-price reactions on May 4 after Durigan briefed the market, with Cyrela leading Ibovespa losses on the day at minus 2.89 percent before stabilising.
Connected Coverage
For broader context, see our coverage of the Brazilian corporate debt crisis with 9 million companies in default and our analysis of the Brazil CVM reform ordered by the Supreme Court.
What Happens Next
- May 26, 2026: Additional 7.7 billion reais of saque-aniversário FGTS balances released to eligible workers via the FGTS app.
- August 3, 2026: 90-day Desenrola 2.0 window expires unless extended by Congress when reviewing Provisional Measure 1.355.
- Congress vote: The Provisional Measure must be ratified within 120 days; Senate and Chamber will set the timetable in May.
Frequently Asked Questions
Who is eligible for Desenrola 2.0?
Desenrola 2.0 covers Brazilians earning up to five minimum wages, equivalent to 8,105 reais a month, with debts contracted before January 31, 2026 and arrears between 91 and 720 days. Eligible products include credit cards, overdraft lines and unsecured personal loans, with the renegotiated balance capped at 15,000 reais per institution. Beneficiaries must approach their bank or use the Serasa app, since there is no single government platform.
How can FGTS funds be used in Desenrola 2.0?
Workers may use 20 percent of their FGTS balance, or up to 1,000 reais, whichever is greater, to settle renegotiated debts under Desenrola 2.0, with funds transferred directly to the creditor. The total FGTS allocation reaches 8.2 billion reais across the 90-day window. Workers who tap this option lose access to the saque-aniversário withdrawal scheme until the amount used is restored to the FGTS account.
How big is the discount under Desenrola 2.0?
Discounts on Desenrola 2.0 range from 30 percent to 90 percent, with rotating credit-card debt qualifying for cuts between 40 and 90 percent and non-payroll personal loans for 30 to 80 percent. The size of the discount depends on the time the debt has been overdue, with longer arrears producing deeper cuts. Pagamento à vista buyers receive an additional 12 percent reduction on principal, and balances may be split into up to 150 instalments.
Why was Desenrola 2.0 launched now?
Desenrola 2.0 launches with public debt at 80.1 percent of GDP and household debt at 49 percent of income, both records or near-records. Roughly 81.7 million Brazilians were in default in March 2026, holding 557 billion reais of overdue balances. Politically, AtlasIntel’s late-April poll showed Lula tied with Flávio Bolsonaro at 47.8 percent versus 47.5 percent in a second-round simulation, raising the value of fiscal-credit relief ahead of October 2026.
Updated: 2026-05-06T07:55:00Z by Rio Times Editorial Desk