trending Market Intelligence /marketintelligence/en/news-insights/trending/m-7EVTYrRqWTRkZ8w2iBkQ2 content
Log in to other products

Login to Market Intelligence Platform

 /


Looking for more?

Contact Us
In This List

Bolsonaro rejects bank check bill, approves FGTS credit legislation

Banking Essentials Newsletter - November Edition

University Essentials | COVID-19 Economic Outlook in Banking: Rates and Long-Term Expectations: Q&A with the Experts

Estimating Credit Losses Under COVID-19 and the Post-Crisis Recovery

StreetTalk – Episode 70: Banks' Liquidity Conundrum Could Fuel M&A Activity


Bolsonaro rejects bank check bill, approves FGTS credit legislation

President Jair Bolsonaro on Jan. 11 vetoed a bill aimed to define the circumstances in which businesses can reject payments made by check, according to the country's Official Gazette.

The bill, which Brazil's Congress approved in December 2018, specified conditions in which businesses could reject checks, for instance if the payer had a history of poor credit or if the person was not the principal account owner, according to a report by Diário Comércio Indústria & Serviços.

But in the presidential notice vetoing the bill, Bolsonaro alleged that the proposal could negatively impact overall revenue, potentially putting commercial activity at risk.

The move comes after the president sanctioned legislation that will — among other things — prohibit credit institutions from conducting financing operations or granting interest and fine exemptions through the FGTS, a national fund of employee savings with some 500 billion reais in assets, to companies with outstanding FGTS debts.