Lula launches $800 million credit line for delivery motorcyclists

President Luiz Inácio Lula da Silva of Brazil has launched a significant credit line totaling 4 billion reais (approximately $800 million USD) aimed at assisting delivery workers and motorcyclists in acquiring new vehicles. The announcement, made in Brasilia, comes just three months before presidential elections, where the progressive leader is seeking a fourth non-consecutive term.

The program intends to facilitate the purchase of electric bicycles, scooters, mopeds, electric motorcycles, and flex-fuel motorcycles manufactured in Brazil. Its objectives include modernizing the country's vehicle fleet, enhancing the safety of workers in the gig economy, and contributing to the decarbonization of urban transportation. This initiative is particularly relevant given the estimated one million Brazilians who rely on these types of vehicles for their livelihoods.

Eligibility for the credit line extends to registered digital platform delivery workers with at least six months of activity and a minimum of 100 deliveries or trips completed, as well as those with formal employment contracts. Each beneficiary can finance one new vehicle with repayment terms up to 48 months and a two-month grace period before payments begin. The state-run Banco Nacional de Desenvolvimento Econômico e Social (BNDES) will manage the program, supported by other financial institutions.

Interest rates for the credit line are set at a competitive 12.5% annually, with a further reduction to 11.5% for women. This move by Lula aims to bolster his public image and support base by promoting social projects and economic initiatives, particularly in areas of social welfare and family finance, as he campaigns for re-election.