Brazil launches subsidized motorcycle credit program for app-based delivery drivers

BRASILIA, June 12 (Reuters) - Brazil's government on Friday launched a subsidized credit program for app-based delivery drivers to purchase motorcycles, in a fresh move ‌to boost demand and support a part of the workforce that has ‌expanded rapidly in recent years.

The program will offer annual interest rates of 11.5% and 12.5% for female ​and male drivers, respectively, Planning Minister Bruno Moretti said during an event at the presidential palace in Brasilia.

Moretti said state-run lenders Caixa Economica Federal and Banco do Brasil will provide financing to eligible borrowers, noting that ‌a government fund will mitigate ⁠credit risk by covering part of any potential losses.

He did not immediately provide details on the total amount of credit to be ⁠made available.

The initiative is the latest in a series of quasi-fiscal measures introduced since the start of the year that do not directly affect the federal government's primary balance, but ​are aimed ​at boosting demand ahead of elections in ​October. President Luiz Inacio Lula da ‌Silva, a leftist, is seeking a fourth non-consecutive term.

The measures being introduced include a broad program to renegotiate overdue consumer debt, as well as initiatives to encourage truck purchases and support vehicle financing for ride-hailing drivers.

The new program for app-based delivery drivers will target purchases of motorcycles manufactured in Brazil, including electric models, and will be ‌available to drivers registered on platforms for at ​least six months and who have completed at least ​100 trips or deliveries.

It will ​also cover cyclists, motorcycle couriers and taxi drivers formally employed for ‌at least six months with the same ​company.