Brazil's government is set to announce new debt relief initiatives next week to address the country's high household indebtedness. Finance Minister Dario Durigan has proposed measures such as allowing withdrawals from the FGTS for debt payments and facilitating debt renegotiations with significant discounts and reduced interest rates. These initiatives aim to alleviate the financial burden on families, with 80.2% currently in debt, primarily due to credit card obligations. The announcement comes as Brazil grapples with a 15% Selic rate and projected public debt levels reaching 82.4% of GDP by year-end. While the prediction market had priced a 100% probability of a Selic rate hike, the introduction of these debt measures may signal the government's intent to stabilize the economic environment, potentially reducing the need for an immediate rate increase. Observers are keenly awaiting further details from the government and the Central Bank of Brazil's policy meeting.