After the National Social Security Council reduced the interest rate ceiling for payroll loan operations from 2.14% to 1.70% per month, Caixa and Banco do Brasil announced that they had suspended the offer of this credit line. However, the resumption is under evaluation.
In a note sent to EXAME Investthe bank from Brazil informed which carries out technical feasibility studies on the new conditions of credit operations approved on payroll deductible under the agreement with the INSS. “As soon as there is news about the resumption of hiring under the agreement, we will inform you”.
Caixa, on the other hand, said that the decision regarding the new interest rate ceiling is at a lower level than what the bank already practices, and the bank already has the lowest rate on the market.
“With the change, Caixa clarifies that the line is suspended and informs that its availability is conditioned to the completion of the technical studies of economic, financial and operational feasibility, already in progress, with a view to guaranteeing the adequacy of the concessions to the new regulatory provisions. ”
Why did banks suspend payroll loans?
The banks suspended temporarily the granting of payroll loans to retirees after the National Social Security Council reduced the interest ceiling for these credit operations from 2.14% to 1.70% per month. The ceiling also dropped from 3.06% to 2.62% for operations with payroll card.
The change in interest rates was made without the Ministry of Finance by the Minister of Social Security, Carlos Lupi, and ended up causing embarrassment for the president. Luiz Inacio Lula da Silva — since an eventual reversal of the measure has a political cost for the government.
The proposal was approved by 15 votes in favor and three against. No interest limit in this category will be 1.70% per month. Until then, the monthly level was set at 2.14%. The collegiate also approved a reduction in interest on the payroll credit card. The new ceiling will be 2.62% and the value so far defined was 3.06%.
What does Febraban say?
The Federation of Banks stated that each associated bank follows its commercial business strategy in granting, or not, the payroll credit line to INSS beneficiaries, in view of the decision of the National Social Security Council to reduce the interest ceiling for this type of credit .
The financial sector had already manifested itself to the Ministry of Social Security and the INSS, stating that, at this moment, considering the high funding costs, a possible reduction in the ceiling could further compromise the offer of payroll loans and payroll credit cards. The fixed interest levels need to be compatible with the cost structure of the product.