'Desenrola' aims to clear credit records of up to 2.5m people

Desenrola, the government’s debt renegotiation program, will be able to clear the records of up to 2.5 million individuals with debts of up to R$100. The projection was released by Finance Minister Fernando Haddad on Monday when banks began renegotiating debts.According to the minister, with the banks that have already joined the program, about 1.5 million people will have their credit records cleared by the end of this month. The number would reach an estimated 2.5 million if Nubank were to join Desenrola. The cancellation of these debts is a condition for financial institutions to participate in the program."A single bank that was in doubt whether to join or not because it has little advantage in presumed credit, it has 1 million individuals with bad credit, Nubank, so we are waiting, if all the big banks join, there will be 2.5 million individuals with cleared credit records," said Mr. Haddad.Nubank was not immediately available for comments.Alexandre Ferreira, advisor to the Secretariat of Economic Reforms of the Ministry of Finance, explained that debts of up to R$100, once cleared, can no longer be included in the credit bureaus. That is, in practice, it will be a forgiveness of these debts."This debt of R$100 cannot be registered as bad credit again, (...) but the debt continues in accounting, in legal terms," Mr. Ferreira said, referring to banking rules that prohibit banks from forgiving a debt, so it will remain in accounting terms...

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