Brazil loan defaults reach record 6.6% in August
EWZ•Brazil's delinquency rate on non-earmarked loans reached a record 6.6% in August, while outstanding credit rose 0.5% to 7.4 trillion reais and the banking spread widened to 34.7 percentage points.
1. Credit strains rise
Brazil's delinquency rate on free-market loans climbed to a record 6.6% in August, above the previous high of 6.4% in July. Total loan originations fell 0.2% from July, while outstanding credit increased 0.5% to 7.4 trillion reais ($1.42 trillion). The banking spread on free-market credit widened to 34.7 percentage points from 33.8 percentage points in July.
