Lula da Silva proposed forgiving the debts of 3.6 million micro-entrepreneurs 12 days before the runoff election

Brazilian President Luiz Inácio Lula da Silva's administration has announced plans to submit a complementary bill to Congress proposing the forgiveness of debts for 3.6 million individual microentrepreneurs (MEI). The initiative addresses state-held debts totaling approximately 12.600 billion reais, equivalent to roughly USD 2.510 billion.

The announcement comes at a politically sensitive juncture, occurring twelve days ahead of a scheduled runoff election (balotaje). The proposed legislation aims to provide significant financial relief to millions of small-scale workers and business owners who currently maintain unpaid obligations to the state.