The government may grant a loan of up to R$1,000 to emergency aid beneficiaries.
Payments related to emergency aid of R$ 600.00 and R$ 300.00 ended in December.
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However, the Federal Government intends to create a microcredit program that will help informal workers assisted by the program during the pandemic.
The loan is expected to be between R$1,500.00 and R$5,000.00. This topic was discussed between Onyx Lorenzoni, Minister of Citizenship, and Roberto Campos Neto, President of the Central Bank.
Caixa Econômica Federal, responsible for managing emergency aid, should be responsible for releasing microcredit.
Caixa currently has approximately R$10 billion available for financing the credit line. However, this amount is expected to increase to R$25 billion if certain measures are implemented by the economic team.
Brazil's public calamity decree due to the pandemic remains in effect until December 31, the same date that marks the end of emergency aid. According to Economy Minister Paulo Guedes, extending the benefit is not in the plans.
End of aid in 2021
To facilitate the new credit line, the government is considering increasing the portion of funds banks are required to transfer to the Central Bank, known as "compulsory deposits." This would be one of the ways it is considering to provide a larger amount of microcredit.
Furthermore, with the shelving of Renda Cidadã, the Bolsa Família social program is expected to undergo changes starting in January 2021.
