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Brazil Allows Use of FGTS Funds to Settle Overdue Debts
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- •The FGTS is a mandatory savings fund for Brazilian workers, accumulated through employer contributions.
- •The new policy permits the use of FGTS funds specifically to pay overdue debts, including loans and bills.
- •This initiative was announced by Brazilian authorities on May 30, 2026.
- •Millions of Brazilian workers are eligible to access their FGTS savings under this new rule.
Qué Podría Pasar Si...
- ▸If a large number of workers use FGTS funds to clear overdue debts then personal debt levels in Brazil could decrease, improving household financial stability and potentially boosting consumer spending.
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