Latin America Financials: Citi‘s Daily Statement – 2026.07.06 – INSS Interest Rate Cap; Desenrola; Rural Debt; Insurers Tax Dispute

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Latin America Financials: Citi‘s Daily Statement – 2026.07.06 – INSS Interest Rate Cap; Desenrola; Rural Debt; Insurers Tax Dispute

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06 Jul 2026 08:25:36 ET │ 9 pages

Latin America Financials

Citi’s Daily Statement – 2026.07.06 – INSS Interest Rate Cap;

Desenrola; Rural Debt; Insurers Tax Dispute

CITI'S TAKE

Daily report over key topics of LatAm financial companies under Citi’s

coverage.

Gustavo SchrodenAC

Government to Propose Lower INSS Payroll Loan Interest Cap (Valor, Jul 3) +55-11-4009-5858

gustavo.schroden@citi.com

Brazil’s Social Security Minister, Wolney Queiroz, said the government plans to Arnon Shirazi, CFA

submit a proposal later this month to reduce the interest-rate cap on INSS payroll- +55-11-4009-7906

deducted loans for retirees and pensioners. The administration argues that, after arnon.shirazi@citi.com

keeping the cap unchanged during the period of higher Selic rates, declining interest

Brian Flores, CFA

rates now create room for lower borrowing costs. The proposal is expected to be

+55-11-4009-2842

discussed and potentially approved by the National Social Security Council (CNPS). luis.brian.flores@citi.com

The government is also working with banks on a permanent methodology for setting

the cap, while seeking to preserve credit availability for higher-risk borrowers.

Government to Lend R$4 Billion to Banks at 1.25% Interest to Support Desenrola for

Non-delinquent Borrowers and FIES (Estadão, Jul. 6)

Brazil’s federal government plans to provide up to R$4 billion in funding to financial

institutions at a 1.25% annual interest rate to encourage new credit operations

aimed at borrowers with a good payment record, including participants in the

Desenrola program and student-loan holders under FIES. The initiative seeks to