Brazil extends withdrawals from Pasep, provides 39.3 bn reais
Last year, total withdrawals from the FGTS inactive accounts totaled 44 billion reais.
The government has increased PIS/Pasep looting for all those who worked between 1971 and 1988, making a total of 39.3 billion reais, which may represent, according to the Ministry of Planning, 0.55 percent of the gross domestic product.
"We are celebrating the 44 billion of the FGTS looting, and now there are 39 billion that can be inserted into the Brazilian economy," President Michel Temer said at a ceremony at the Planalto Palace.
Last year, total withdrawals from the FGTS inactive accounts totaled 44 billion reais, helping to give some momentum to the economy after two years of deep recession. In August of last year, Planning estimated the impact of the FGTS looting on the GDP of 2017 by 0.6 percentage points.
The government released earlier this year the withdrawal of PIS/Pasep funds for people over 60. The measure now maintains indefinite service for people over this age, but releases until September 28 of this year the withdrawal also for people under 60 who worked with a formal contract between 1971 and 1988.
According to the executive secretary of the Ministry of Planning, Gleisson Rubin, of 39 billion reais, about 5 billion reais have already been withdrawn by workers over 60, leaving about 34 billion reais still in the accounts.
According to the ministry's data, 16 billion reais are in accounts of people under 60, who have the deadline until September to make the withdrawal. Another 18 billion reais are still in the accounts of workers over 60, which has no deadline for withdrawal.
"These are accounts that have not been moved for 30 years, only with the correction, and that had very restrictive conditions of withdrawal," explained Rubin.
Caixa Econômica Federal and Banco do Brasil, where PIS and Pasep accounts are deposited, will open withdrawals from next Monday, June 18, until June 29. Afterward, withdrawals will again be allowed as of August 14.