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The president of Sebrae, Decio Lima, on Monday (6) criticized the possibility of canceling credit card installments.
Sectors of the state economy are considering this measure to impose a limit on renewable interest rates, one of the main factors responsible for the debts of Brazilians.
The entity targeting small entrepreneurs has joined forces with politicians from the Parliamentary Trade Front and also from Entrepreneurship against pressure from banks to place restrictions on the method of payment.
In an interview with CNN, Lima criticized the central bank and said that 90% of Brazilians use interest-free installments, especially in retail trade.
“This possibility raised by the central bank scares us, it would be very dangerous, and it would be really ridiculous. If it ends, we will make a whole world of entrepreneurs unviable. They won’t exist anymore. We will also impact people’s consumption. This is an achievement for the Brazilian people. “There is a popular culture of asking for a discount or interest-free installments,” Lima said.
The issue raises disagreement among members of the government and the Central Bank. The entrepreneurship, trade and retail sector has already raised the issue of non-compliance with government ministers, such as Finance Minister Fernando Haddad.
Context of the situation
The discussion about credit card installments has been going on for a few months now. Central Bank President Roberto Campos Neto indicated the possibility of changing installments without interest for the first time in August. He said at the time that the method is one of the main factors that leads consumers to revolving interest, and thus to default.
On October 16, the corporation proposed setting up to 12 interest-free installments on credit card purchases. At that time, Campos Neto was meeting with representatives of trade, machinery and banks, but the meeting ended without consensus.
In addition to CEPRAE, several associations have already expressed their opposition to any kind of change. This is the case for CNC (National Trade Confederation), Prostete, Abad (Brazilian Association of Wholesalers and Distributors), Abrasel (Brazilian Association of Bars and Restaurants), Afrac (Brazilian Association of Trade and Service Technology) and Anamaco (Brazilian Association of Bars and Restaurants). National Council of Building Materials Dealers) and CNDL (National Confederation of Shop Managers). They all confirm that there is no data proving the relationship between installments and residents’ default.
The proposal to limit premiums is linked to discussions regarding interest on revolving credit. In August, the interest rate on revolving credit reached 445.7%. The increase was 4.4 percentage points compared to July.
Charlotte Whitmore is a contributor at Mediarunsearch.co.uk, covering a broad range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting and practical information that helps readers stay informed about current events and emerging developments. Her work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism that keeps readers connected to the issues shaping the UK and beyond.