Brazil to allow 500 reais 'FGTS' fund withdrawals to stimulate economy

SAO PAULO: Brazil's Presidential Chief of Staff Onyx Lorenzoni said on Wednesday that workers will be able to withdraw up to 500 reais ($132.00) from a workers' severance fund, the government's latest bid to stimulate the economy.

The total expected to be freed up from the FGTS fund, as the account is known, will reach 42 billion reais this year and next, and will formally be announced later on Wednesday, Economy Minister Paulo Guedes said on Tuesday.

In a nod to the government's economic agenda for the second half of the year, Lorenzoni also said that tax reform will look to address the overall tax burden.