Brazil’s Deadbeats Grow 13%

In comparison with June, consumer delinquency in Brazil was down 3.7% in July, maintaining the downward trend that began in June, when the index fell 3% in the month-to-month comparison.

Nevertheless, there has been a cumulative increase of 13.2% during the first seven months of 2005, in relation to the same period last year.


These data were obtained from the Serasa Indicator of Personal Delinquency, which registers the level of overdue debt payments for individuals. Serasa is a leading Brazilian company specializing in economic and financial analysis and information.


The study views the decrease in July as a positive sign, reflecting the “reduction in unemployment rates and the increase in real income, in consequence of lower inflation rates.”


The Serasa technical team explains in the study that the growth of delinquency in 2005 is the result of the “high indebtedness of the population, fruit of the expansion of financial credit to individuals and the significant growth in the acquisition of durable consumer goods, through credit made available by the retail network,” and points out that “the high interest rates for consumer credit” also contribute to this state of affairs.


Checks with insufficient funds were responsible for the largest share of the increase in July, in comparison with July of last year. The percentage was up 2%, attaining 36.3% of the overall delinquency statistic.


After checks with insufficient funds, the most importance sources of delinquency were, in declining order, overdue payments to credit card administrators and loan companies, bank debts, and protested notes registered with the Serasa.


Agência Brasil

Tags:

Ads

You May Also Like

Morocco Wants to Make Ethanol with Brazilian Help

Morocco is interested in producing ethanol and wants help from Brazil in the area. ...

Brazil Anticipates Sugar Cane Harvest by 2 Months to Contain Ethanol Prices

Brazilian drivers, many of them behind the wheel of newly popular hybrid models (known ...

Brazil Urges EU to Open Its Market to Agricultural Goods

Brazilian President Luiz Inácio Lula da Silva has sent a letter to the leaders ...

Foreign Investors Romancing Brazil’s Cattle Breeding Business

Foreigners wish to participate in the growth of Brazil’s beef exports. Last week, a ...

After Africa State Channel Brazil TV Wants to Reach the US

The government of Brazil has just launched its international Public Broadcasting Service with the ...

Brazil Wants to Be Known As Software-Hip Country

The Brazilian government and the private sector signed an agreement to stimulate exports of ...

Despite Weak Dollar Sales Up 11% at Brazil’s Perdigí£o

Brazilian food company Perdigão reported net sales of R$ 1.2 billion in the first ...

WEG, Brazilian Engine Maker Multinational, to Boost Exports by 40%

WEG, a Brazilian multinational that is the largest producer of electric engines in Latin ...