Brazil launches debt relief program; Caixa, BB to collect on portfolios up to R$10k

Brazil's government launched a program on the eve of elections allowing Caixa and Banco do Brasil to purchase and collect on debt portfolios up to R$10,000, aimed at reducing consumer indebtedness. The measure is a fiscal stimulus with electoral timing, potentially boosting credit and consumption but raising concerns about fiscal costs. Its impact on bank earnings and credit quality is uncertain.