Clipping of news on Brazilian Culture, Law and Citizenship
30/03/2016
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Central bank revised up the result of January, reaching 5.5% after 5.4% reported delinquency
non-payment rate has been rising before the pressure on the budget of Brazilian
The default on the country's credit market in the segment of free funds remained at 5.5% in February, its highest level of the series, the central bank said on Tuesday.
The central bank revised up the result of January after previously disclosing default of 5.4% for the segment in which the loans have interest rates set freely by financial institutions.
The nonpayment rate is rising in the face of increasing pressure on the budgets of Brazil, amid the economic recession, inflation and high interest rates, and a strong deterioration of the labor market, reaching in January the highest level of the series started in March 2011.
Reflecting the concern of banks to increase loans not repaid, the provision made by public financial institutions rose 4.3% in January to 4.4% in February, preliminary data.
In foreign banks, the percentage also advanced from 6.2% to 6.4%. It remained stable only in national private financial institutions by 8.6%.
Rates to consumers
In February, the average interest of free resources segment also grew by 50.6% per year, against 49.6% in January, a record series.
At the same time, the banking spread, which calculates the difference between the cost of borrowing and the rate charged by banks to the final consumer, rose to 35.8 percentage points in the segment in the month, down from 34.3 points in January.
The total credit stock in the country, which also includes the segment of targeted resources, had low 0.5% in February to 3.184 trillion reais. With that, he became responsible for 53.6 percent of Gross Domestic Product (GDP).
Source: Economic Brazil
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This article was translated by an automatic translation system, and was therefore not reviewed by people.