Overview
- The government announced the package on Tuesday, proposing full cancellation of state-held debts for roughly 3.6 million microentrepreneurs registered as MEI, with the benefit slated to start in 2027 if approved by Congress.
- The plan launches Desenrola 3.0, a bank-restructuring scheme that would use auctions to buy portfolios of microloans and set minimum haircuts of about 90% for those private debts.
- Officials proposed raising MEI annual turnover limits from about €14,500 to €19,500 in 2027 and to €25,000 in 2028, and easing rules so some small retailers would not have to issue fiscal receipts or register for a CNPJ.
- The package includes roughly €752 million in subsidies and productive support through 2030, with priority for low-income women entrepreneurs, and the government says debt condonation would also clear legal collections and restore access to credit.
- Implementation will depend on new legislation and regulatory design, and it may prompt resistance from private banks and raise questions about credit-market incentives and longer-term fiscal costs.