The government intends to reduce, next week, the ceiling of interest rates charged by banks and financial institutions on payroll loans for retirees and pensioners of the National Institute of Social Security (INSS).
The decision should be taken at a meeting, on Monday (13), of the National Social Security Council (CNPS).
The council does not define the rates that will be effectively applied in consigned operations, but it establishes a maximum value for the interest charged. Today this ceiling is 2.14% per month for loans that have installments deducted directly from the payroll and 3.06% per month for credit card operations.
According to aides close to President Luiz Inácio Lula da Silva, the government’s intention is for these values to remain below 2% for loans and 3% for credit cards. A proposal from the Executive Branch will be taken to the CNPS for deliberation.
The council is chaired by the Minister of Social Security, Carlos Lupi, and has 14 other members. They are representatives of the government, retirees and pensioners, active workers and employers.
Today, the financial system has 17 million active payroll loan contracts for INSS retirees and pensioners. These contracts total around R$360 billion. The new interest rate ceiling, if effectively approved, is valid only for futures contracts.
Source: CNN Brasil
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
