Brazil to buy family debts from banks at up to 90% discount, refinance consumers

Brazil's Planning Minister announced a program to purchase household debts from banks at discounts up to 90%, canceling up to US$28 billion, then refinance consumers. This is a state intervention in credit markets that transfers losses to the public balance sheet; details on eligibility and fiscal cost remain unclear. It signals a shift toward consumer relief ahead of elections, with potential implications for bank earnings and fiscal credibility.