BRASILIA - Loan defaults in Brazil fell to historic lows in October, figures showed on Friday, in further evidence of the economy’s recovery and that the central bank’s steps to loosen financial conditions were working.
Key measures of household and business loan defaults were their lowest since the central bank’s data series began in 2011, although lending spreads widened slightly from the previous month’s record lows. The default ratio for non-financial companies fell to a record low 1.5% from 1.6%, while the broad measure of household defaults, including borrowing such as auto loans and overdrafts, also fell to a series low of 4.5% from 4.6% the month before.
The central bank has made available more than 1.2 trillion reais worth of credit and liquidity to businesses, banks and financial markets to cushion the economic shock of COVID-19.
Source: Financial Digest (financialdigest.net)
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