Brasília – The number of insolvent consumers in Brazil was up 4.52% in June 2015 from June 2014, the local credit protection service Serviço de Proteção ao Crédito (SPC Brasil) and the National Confederation of Retail Managers (CNDL) reported this Tuesday (14th). The numbers are level with May 2015.
According to SPC, in June, 56.5 million consumers were listed in insolvency registers. The number is equivalent to 39.8% of the Brazilian population aged 18 to 95.
The number of overdue debts in June was 5.75% higher than in the same month of 2014. In June from May 2015, however, overdue debts were down 0.86%. SPC chief economist Marcela Kawauti said the amount of debt per debtor increased. “Today, each insolvent Brazilian citizen has 2.12 debts overdue, on average.”
According to the CNDL, besides deteriorating consumer confidence, escalating inflation and interest rates have detracted from Brazilians’ ability to honor their obligations. In June from June 2014, debts overdue for up to 90 days increased the most, by 8.47%, as did debts overdue for 3 to 5 years, up 15.76%.
Insolvency is highest in water and electricity, up 15.61%, and banks, up 9.55% in June from June 2014. The banking sector remains the creditor of 48.4% of all overdue debts in the country.
*Translated by Gabriel Pomerancblum
