Individual Brazilians Paying Back Their Debt
Post on July 31, 2013, 2:09 pm by the-victoria-law-group 0 Comments
Who is the nation of deadbeats? Apparently, the Brazilians are less so these days. The ability of the people to repay their debt is always concomitant with the country’s economic ability to grow. Brazil was not doing so well in this task. But there is a light at the end of the tunnel. Loan delinquencies in Brazil’s banking system fell in June for the first time since March, in a sign that private-sector lenders’ efforts to slow credit growth were finally bearing fruit.
Loans in arrears for 90 days or more, the industry’s benchmark gauge for credit delinquencies, fell to 5.2 percent of outstanding loans last month from 5.5 percent in May, where it had remained since March, the central bank said in a report on Friday.
Private sector banks are stepping away from riskier loan segments, a move that leads to a decline in interest-rate income but minimizes the risk of defaults, while the loan book of state-run banks is growing faster than the amount of overdue credit. Lower delinquencies in June were driven by a 0.3 percentage point decrease in consumer loan defaults, followed by a 0.1 point decline in corporate loan defaults, the report showed.
Read Reuters article here:
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