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Debts

Default in July is the largest series of Central Bank

This article was translated by an automatic translation system, and was therefore not reviewed by people.

 

Kelly Oliveira
 
Brasília - The total default rate for credit with free resources reached 5.9% in July, the highest since the series began Central Bank (BC) in June 2000. This increase was driven by the insolvency of companies, which reached 3.8% last month, the highest rate since May 2001. In the case of individuals, the default rate remained at 8.6% in July.

The central bank considers the percentage of defaults in arrears over 90 days. The expectation of the Head of the Economic Department of the institution, Altamir Lopes, is that the default rate for corporate entities (companies) fall. He said this forecast is based on the fact that delays in payments of less than 90 days have been stable, settling. In June, the percentage of delay was stable at 2.3%.

Moreover, according to Lopes, the default rate for companies is "very localized" in basically two ways: bill discount (from 7.7% to 8.5% from June to July) and account-security ( from 4.5% to 4.7%). "The hope is that, as they regularize these lines of credit to businesses, also has more regular payment, reduced bad debt," said Lopes.

In the case of individuals, the only course that had an increase in delinquencies was the overdraft, which rose from 10.5% in June to 11.3% in July. In the case of personal loans, was unchanged at 5.4% and fell to the purchase of vehicles (from 5.4% to 5.3%) and for the purchase of other goods (from 15.6% to 15.2% ).

According to Lopes, the growth of default by the overdraft occurs because customers are migrating this type of financing more expensive for the payroll credit. However, he points out that the payroll loan is basically designed for retirees and public sector workers. The other assesses Lopes, have less access to the mode recorded in payroll and still more difficult to pay off bills, which increases the default.


Source: Agência Brazil

This article was translated by an automatic translation system, and was therefore not reviewed by people.

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