Brazil's National Financial System volume of credit reached 1.085 trillion reais (US$ 669 billion) in July, a figure equivalent to 37% of the GDP (Gross Domestic Product) i.e. the sum of goods and services produced in Brazil during that whole month.
This is the highest percentage ever recorded since the Central Bank of Brazil began keeping track of the results, in July 1994. Previously, the highest value had been recorded in January 1995, when the rate was 36.8%, according to figures supplied by the Central Bank.
The average interest rate (natural persons and legal entities) has increased. The annual percentage went up from 38%, in June, to 39.4% in July. In the 12-month period ending in July, the average rate grew 3.5%.
So far this year, there has been an increase of 5.6%. In the case of operations targeted at natural persons alone, the annual average rose from 49.1% in June to 51.4% last month. This is the highest rate since January 2007, when the annual rate was 52.3% a year.
The average annual interest rate for companies (legal entities) went up from 26.6%, in June to 27.5% last month, the highest since August 2006, when the rate was 27.9%. Interest on the overdraft facilities remains high.
In July, they reached 162.7% a year, the highest figure since August 2003 (163.9%). In June, the rate was 159.1% a year. The increase totaled 23.5% over a 12-month period, and 24.6% this year.
The surplus from overdraft facilities for natural persons reached 15.561 billion reais (US$ 9.5 billion) in July, representing reduction of 1% over the previous month. The population of Brazil resorts more to personal credit (118.805 billion reais, or US$ 73.2 billion) and other modalities, such as credit cards (20.468 billion reais or US$ 12.6 billion).
Consumers are also paying more for personal credit, which includes operations deducted from paychecks. The interest rate went from 51.4% in June to 53.6% in July. So far this year, the increase was 7.8%¨and in the 12-month period, 3%.
Interest rate on purchases of vehicles rose from 31.1% a year to 33.5% a year. This year, there has been growth of 4.7% and in the last 12-month period, 4.8%.
Overall insolvency, considering delays of over 90 days, totaled 4.2%, as against 4% in June. For legal entities, insolvency remained at 1.7%, and for natural persons it increased from 7% to 7.3%.