Brazil credit offer up 563.8% over ten years

Criado em 17/09/13 16h37 e atualizado em 18/09/13 15h14
Por Marli Moreira Edição:s Fonte:Agência Brasil

São Paulo – Credit granted in Brazil reached US$ 1.105 trillion last June, which represents a growth of 563.8% over the amount of June, 2003, when US$ 168.590 billion in credit was granted.

As regards the GDP (Gross Domestic Product), the total amount of wealth produced in the country, the volume rose from 24.7% to 55.2%. The figures are from a study conducted by the National Association of Finance, Administration and Accounting Executives (“Anefac”).

The survey shows wider use of credit by natural persons. These borrowers have increased their demand for credit by 766.7% in the last ten years, going from US$ 36.476 billion to US$ 316.22 billion. In the case with credit taken by companies, it leapt from US$ 58.451 billion to US$ 322.89 billion, 452.4% higher.

The interest rate fell at an average of 30 percentage points. It was 56.7% in June, 2003, and reached 26.5% last June.

Business credit lines lowered from 38.6% to 19.3%, a drop equivalent to 19.3 percentage points. For these borrowers, the average deadline for parcelling out debts reached 30.1 months, against 5.7 months offered previously.

For natural persons, the interest rate dropped from 81.4% to 34.9% per year, a fall of 46.5 percentage points. The deadline for payment, which was 9.8 months, rose to 47.9 months, equivalent to a growth of 388.8%.

Miguel José Ribeiro de Oliveira, executive director of Anefac, pointed out that credit operations were carried out in an environment of lowered interest rates and yield spreads (the difference between the interest rate charged by the bank and the rate it pays upon receiving money), besides extended average deadlines for loans, and defaults went down 5.2 percentage points.

In his evaluation, there's still room for credit availability to grow even more under the current economic conditions. “We’ve had some turbulence, as financial institutions in the private sector grew more selective, but these restrictions were counteracted by the public banks and we can still make more progress,” said the executive. According to him, in countries with economies the same scale as Brazil's, the volume of credit amounts to 100% of their GDP.

Editors: Davi Oliveira / Nira Foster
Translators: Fabrício Ferreira