Brazil loan defaults climbed to the highest level on record in May, rising even as the government pushes its Desenrola debt-relief drive to ease the strain.
Key Facts
—The record. The share of loans more than ninety days overdue rose to 4.7% in May, the highest since the central bank series began in 2011.
—Households. Family default reached 5.6%, also a record, while company default climbed to 3.24%, the worst since 2017.
—Despite relief. The rise came even as the government’s Desenrola drive renegotiated some R$20bn ($3.85bn) in debt.
—The burden. Debt payments now eat up about 28% of the average family’s income before other costs.
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