São Paulo – Last year, 641 insolvencies were declared in Brazil, 12.4% less than in 2010 (732). Using the same basis of comparison, there was also a 10.4% decline in the number of insolvency requests, from 1,939 to 1,737. In both cases, the figures were the lowest since 2005, the year in which the new insolvency act became effective.
The figures were culled from survey Serasa Experian Insolvency and Recoveries Indicator. “The strong domestic market and the growth of credit have prevented the restrictive monetary policy of inflation control through high interest rates from having greater impact on insolvency on the part of enterprises. Also, the effects of the world crisis have also been minimized,” said the Serasa Experian economists.
Judicial recovery requests, in turn, have increased by 10%, from 475, in 2010, to 515 in 2011.
*Translated by Gabriel Pomerancblum
