The economic plans introduced in Brazil in the 1980s and 1990s caused savers to lose R$ 11 billion, according to estimates. Reimbursing those savers will have a positive effect on economic activity, as per an assessment made by Murilo Portugal, chairman of the Brazilian Federation of Banks (Febraban, in the Portuguese acronym), on Tuesday (22).

“Despite being part of the economy, those funds were kept by banks, which have a low propensity to consume. As [the funds] were provisioned, they could not be used for other purposes”, he explained in an interview.

According to Mr Portugal, once these funds are transferred back to savers under the settlement, they are likely to affect consumption and investment, with a positive impact on the Brazilian economy. This is similar to what happened last year, when Workers' Severance Indemnity Fund (FGTS) idle accounts were made available.

Millions of beneficiaries

Grace Mendonça, Brazil’s Federal Attorney General (AGU, in the Portuguese acronym), mediated the legal agreement, which had been pending for 30 years in Brazilian courts. According to her, about three million account holders will benefit from this decision. It is the widest-reaching agreement in the history of Brazilian courts.

“We have finally managed to turn all our efforts into reality and offer society a digital platform that will enable payments to be made in an orderly way”, she added.

Digital platform

Account holders demanding compensation for their losses resulting from economic plans will now be able to make such claims through a digital platform. Payments will be made by 2019, and senior citizens will have the priority.