Brazil Launches Desenrola Brasil 3.0 to Purchase and Renegotiate Personal Debts

The Brazilian federal government has launched Desenrola Brasil 3.0, a major debt relief initiative allowing the Union to buy overdue personal debts and renegotiate them with debtors, offering significant discounts. Signed by President Luiz Inácio Lula da Silva, this third phase targets debts between R$ 720 to R$ 1,645 days overdue (approximately 2 to 4.5 years), with an original debt amount capped at R$ 10,000. Both bank and non-bank debts are eligible, including credit card debts and unsecured personal loans.

The government will conduct auctions where creditors offer debt portfolios at a minimum 90% discount. For example, debt portfolios worth R$ 10 million could be acquired by the government for as little as R$ 1 million. With a spending limit of R$ 15 billion, the government estimates it can purchase up to R$ 150 billion in debts and expects to renegotiate around R$ 75 billion, potentially benefiting up to 15 million people. Debtors can settle their debts either upfront or in installments, with payment terms to be regulated by the National Monetary Council.

This program builds on the success of previous Desenrola phases, which assisted 25 million people and renegotiated over R$ 75 billion in debts. The Ministry of Finance oversees implementation, potentially using Caixa Econômica Federal or Banco do Brasil for auctions and portfolio management. As of August 2026, there are 83.9 million Brazilians with unpaid debts totaling R$ 592 billion, averaging four debts per person.

The provisional measure enabling this initiative is effective immediately but requires further regulation for full operationalization, with implementation milestones scheduled between September 2026 and February 2027.