Corporate delinquency sees biggest increase in 20 months in May - Serasa

- Tuesday, June 28, 2011

Corporate delinquency sees biggest increase in 20 months in May - Serasa

Corporate delinquency in Brazil recorded a 23.6% increase in May over the same month in 2010, the biggest year-on-year expansion since June 2009, credit information firm Serasa Experian said in a report.

Corporate delinquency also expanded on a monthly comparison, up 16.2% in May from April, while it rose 7.1% in January-May over the year-ago period.

According to Serasa economists, the big increase in corporate delinquency is explained by interest rate hikes and an economic deceleration as the government seeks to contain inflationary pressures.

Start your 15 day free trial now!

cta-arrow

Already a subscriber? Please, login

The firm also noted that increased consumer delinquency is impacting companies' cash flow.