Banks consider making payroll loans more flexible in case of pay cut in crisis

Bank study make payroll loans more flexible, with payroll discount, for workers whose income was affected during the crisis caused by the new coronavirus in Brazil, Estadão / Broadcast. At the table, the discussions aim to implement temporary changes, such as the adaptation of quotas for operations already contracted for those who had their jobs. reduced wages or suspended employment contract within the scope of provisional measure 936, which instituted the Emergency Employment and Income Maintenance Program.

Discussions on how to make payroll loans more flexible in specific cases, and not indiscriminately, as has already been done in other modalities, would go ahead and should become an invoice, details the executive of a large bank, on condition of anonymity. . In the case of workers whose wages and hours were reduced by 25%, for example, the portion of the contracted loan would be reduced in the same proportion. The same reasoning applies to those whose employment contract was suspended, who would have a grace period for an equal period, with the quotas maintained on the outstanding balance under the same conditions.

The debate on the flexibility of payroll loans is taking place amidst the spread of lawsuits and decrees demanding the suspension of payments amid the pandemic. Preventing these determinations from spreading and putting one of the safest lines on the market at risk is one of the objectives of the banks, which will already have to manage the increase in defaults in the midst of the crisis caused by Covid-19.

With a balance of almost R $ 400 billion, until February, payroll loans today represent a third of the loan portfolio for individuals, considering free resources, according to data from the Central Bank. The stock increased in recent years amid increased attention from banks for the modality, which despite being considered ‘mature’ in the country, grows at an annual rate of 15%. For borrowers, the incentive is interest, one of the lowest on the market, considering lines directed at individuals. Consequently, it also represents one of the lowest defaults precisely because banks are guaranteed a direct discount on workers’ payroll.

The discussion on the adoption of temporary flexibility in payroll loans during the coronavirus pandemic is being led by the Brazilian Federation of Banks (Febraban), as reported by bank executives, on condition of anonymity. In this sense, conversations have been held with the leaders of Congress on how to approach the subject in the legislative sphere, since, in parallel, there are already several projects that address the same subject.

Febraban President Isaac Sidney admitted, in a recent life with the mayor, Rodrigo Maia, that banks were studying the possibility of extending the grace period already offered in other types of credit to payroll loans. The balance released today by the federation shows that 3.8 million contracts with current operations have already been renegotiated. Deferred installments total R $ 22.2 billion and represent a balance of approximately R $ 230.6 billion.

However, in payroll loans, offering a grace period or any other flexibility is more complex. This is because, in addition to the bank and the borrower, there are two other agents involved: the company that pays the payroll and a third party that operates this process. There are an estimated 8,000 agreements in Brazil.

In addition to making shipping more flexible for MP 936, according to sources, facilitate the contracting of new loans. In this regard, banks are discussing granting a grace period to start payment as a way to give people additional respite during the crisis.

Another possibility is to increase the credit margin under payroll, from 35% to 40%, keeping 5% referring to payroll credit card operations. The matter is being discussed by the secretary of the special undersecretary of Social Security and Labor, Bruno Bianco, and a legislative proposal is expected soon as part of the effort to mitigate the economic effects of the new coronavirus crisis.

However, the changes under discussion should only be taken during the pandemic, in line with the other measures already announced so far. In addition, its objective is to give an additional respite or help those workers whose income has been compromised in the public or private sphere. Of the approximately R $ 400 billion of the balance in payroll loans, the majority, or R $ 228 billion, are public sector operations, that is, whose wages were not affected by the pandemic. Another R $ 142 billion refer to retirees and pensioners of the INSS and only R $ 24 billion refer to workers in private companies.

At the discussion table, one of the banks’ concerns is exactly the flexibility of the payroll in an indiscriminate way, which could affect the granting of new loans, whose appetite for financial institutions has already been reduced amid uncertainties in the economic scenario. This is because those who did not have their wages affected due to the crisis should not be included. This is the case, for example, of public officials, as well as INSS retirees and pensioners.

Economy Minister Paulo Guedes defended today that public servants keep their wages frozen for a year and a half amid the crisis. In this specific case, and even for those whose wages have been cut as proposed by some municipalities, banks would also be willing to make payroll loans more flexible, according to sources.

Last week, the Federal Court of the Federal District ordered banks to suspend payroll deductible loans taken by retirees, pensioners and public officials for four months. The lawsuit, whose defendants are the Federal Government, the Central Bank and the president of the monetary authority, Roberto Campos Neto, is precisely what the sector wants to avoid, since it represents a risk for a secure line and that it can be a alternative for people. in this crisis