LATIN AMERICA ADVISOR

Financial Services Advisor

A biweekly publication Of the dialogue

May 7, 2025

Will the Expansion of a Loan Program Benefit Brazilians?

The Brazilian government recently announced that it will expand a payroll-deductible loan program. // File Photo: Rochu_2008 via Adobe Stock.

Q

A

Daniel Girola, vice president-senior analyst, and Ceres Lisboa, associate managing director, both in the Financial Institutions Group for Latin America at Moody’s Ratings: “The measure to expand payroll-deductible loans for private-sector workers aims to stimulate economic activity by providing banks with well-structured and secured consumer loans that have high business potential. While this product is expected to offer lower interest rates compared to unsecured personal loans—which could help alleviate existing debt burdens—this measure comes at a time of high interest rates and inflationary pressures that are likely to continue affecting borrowers’ repayment capacity. We expect both large incumbent banks and digital banks to leverage their customer bases to offer the new product. In particular, digital banks that currently have minimal or nonexistent shares in private payroll loans due to a lack of relationships with large companies will find greater growth potential in the new centralized model. Penetration into the large, addressable market of private-company employees is likely to happen gradually as banks refine their credit models and…”

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ABOUT THE financial services ADVISOR

Covering Latin America’s banking and insurance sectors, remittances trends and data, micro lending issues, new technologies in the industry, anti-money laundering regulations, and much more, the Inter-American Dialogue’s biweekly Financial Services Advisor, a sister publication of the Latin America Advisor, gives readers fresh insight and diverse viewpoints from financial sector leaders. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Gene Kuleta
Editor
202.463.2920
gkuleta@thedialogue.org
Jack Quinn
Reporter

jquinn@thedialogue.org
Lori Rampani
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board of advisors

Ernesto Armenteros
Vice Chairman
of the Board,
Banco de Ahorro y Credito Union

Michael Diaz
Partner,
Diaz, Reus & Targ, LLP

Desiree Green
Vice President,
Int’l Gov’t Affairs,
Prudential Financial

Earl Jarrett
Deputy Chairman & CEO
The Jamaica National Group

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

Thomas Morante
Partner,
Pierson Ferdinand

Manuel Orozco
Senior Fellow,
Inter-American Dialogue

Adalberto Palma Gómez
Senior Partner,
Aperture SC

Rodolfo Pittaluga
Adjunct Professor,
Florida International University
College of Law

Roberto Teixeira da Costa
Founder & Board Member Emeritus, CEBRI

Mario Trujillo
CEO,
DolEx Dollar Express

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