By Brazil Stock Guide – Brazil’s Desenrola 2.0 debt-relief program recorded more than 17,000 transactions using resources from the FGTS severance fund to pay off debts owed to financial institutions, according to Agência Brasil.
The Labor Ministry said the average withdrawal used to settle debts was 604.73 reais. The second phase of the federal program mobilized 10.3 million reais to support debt regularization through negotiations that include discounts and lower interest rates.
The initiative allows workers to use FGTS-linked resources to reduce overdue liabilities with banks, expanding the government’s efforts to ease household indebtedness and improve repayment conditions for borrowers.
The ministry also said the release of blocked funds under the so-called birthday-withdrawal system benefited 14.6 million workers whose employment contracts were terminated or suspended between 2020 and 2025.
A total of 16.7 billion reais was released under that mechanism, of which 14.9 billion reais was effectively paid out to beneficiaries.
Extraordinary FGTS withdrawals have reached 34.7 billion reais since 2023, according to the ministry’s figures. Such withdrawals are authorized on an exceptional basis by the federal government in specific circumstances, including economic crises, pandemics, emergencies or measures designed to stimulate consumption by injecting money into the economy.