Brazilians to Tap Severance Fund for Debt Relief, Minister Says

Brazil will let workers settle debts using a fund typically reserved for severance pay or buying property, the country’s Finance Minister Dario Durigan said in an interview with Folha de S.Paulo newspaper.

Workers earning up to five times the minimum wage will be able to withdraw as much as 20% of their severance fund balances, known as FGTS, to pay off debt, Durigan said. It comes amid growing concern about rising household arrears.