SAO PAULO, April 9 (Reuters) – Brazil’s government will release 7 billion reais ($1.37 billion) from the workers’ severance fund FTGS to benefit around 10 million workers, news outlet O Globo reported on Thursday citing an interview with Labor Minister Luiz Marinho. The measure is part of a package being prepared by the economic team […]
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Brazil to release $1.37 billion from severance fund for 10 million workers, O Globo reports
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SAO PAULO, April 9 (Reuters) – Brazil’s government will release 7 billion reais ($1.37 billion) from the workers’ severance fund FTGS to benefit around 10 million workers, news outlet O Globo reported on Thursday citing an interview with Labor Minister Luiz Marinho.
The measure is part of a package being prepared by the economic team to reduce household debt, according to the report.
Employees can draw from the FGTS severance fund in certain circumstances, such as buying a home, loss of employment or serious health problems.
Marinho told o Globo the plan is to renegotiate and restructure the debts, allowing financial institutions to help sharply cut monthly payments and manage the process.
“The FGTS is being viewed as a minor component of the overall package of measures under discussion,” he said.
The Labor Ministry did not immediately respond to a request for comments from Reuters.
($1 = 5.0962 reais)
(Reporting by Isabel Teles; Editing by Aida Pelaez-Fernandez and Janane Venkatraman)