President Lula Demands Faster Credit Release for App and Taxi Drivers

President Luiz Inácio Lula da Silva met with the presidents of Banco do Brasil and Caixa Econômica Federal on Wednesday to demand greater agility in the release of vehicle financing for taxi and app drivers. The president expressed dissatisfaction with the slow execution of the Move Brasil Táxi e Aplicativos program. Out of the 30 billion reais allocated for the subsidized credit line, only 3.55 billion reais, or 12 percent, had been released as of last Tuesday. The program is set to expire on September 15, which is the final day of the provisional measure that created the line.

Government officials, including Guilherme Boulos and Vice President Geraldo Alckmin, participated in the meeting. Lula requested that banks improve customer service and provide detailed explanations when credit is denied to address social media complaints. During the meeting, the government agreed to expand the program by increasing the maximum vehicle value from 150,000 reais to 200,000 reais and including more hybrid vehicle options. Banks have also adjusted risk calculations to ignore current vehicle rental costs and account for lower fuel expenses for electric cars.

Despite government subsidies and a guarantee fund to cover defaults, financial institutions report difficulties in granting loans. Sector sources state that many drivers cannot prove their capacity to pay installments or have credit restrictions due to old debts and legal processes. While the government seeks to accelerate the process, bank representatives question if increasing the maximum financing limit will drive demand, noting that the current average ticket is 103,000 reais.