Default increases and breaks historic record in May, points out BC

The average default rate for credit operations rose to 4.7% in May and reached a historic record. The data represents the highest rate in the historical series, which began in March 2011. The data was released this Wednesday (1), by the BC (Central Bank).

In April, the indicator totaled 4.6%, that is, there was an increase of 0.1 percentage point in the month of May. This historic record occurs in the month in which the government launched Desenrola 2.0, a new version of the debt renegotiation program.

The Central Bank considers credit operations overdue for more than 90 days in its indicator. The indicator applies to both individuals and companies.

In the case of company defaults, the figure rose to 3.24% in May, after a result of 3.1% in April. This is the highest percentage since November 2017.

Debt on the rise
Debt among Brazilians also remains high.

Also according to the BC report, household debt stood at 49.8% in April, remaining stable throughout the month. In the 12-month comparison, there was an increase of 0.9 percentage points.

Income commitment also remained stable in April, compared to March. In 12 months, the indicator increased by 1.1 percentage points, standing at 28.2%.

The data is contained in the Monetary and Credit Statistics Report released this Wednesday (1st) by the monetary authority.

Source: CNN