Taking up its standard playbook, Brazilian banking association Febraban has recommended that its member institutions show a soft stance on slow debt payments in regions most impacted by bouts of major flooding in recent days.
Febraban said in a statement that banks should work with municipalities and public utilities to create a process to have formal exemptions from late payments and shutoffs. But the group noted that tax collection would fall on government entities.
The floods, caused by record-high rainfall in the course of only a day or so, began causing destruction in Sao Paulo state on Tuesday (Jan 11), killing more than a dozen residents, and have continued in Rio de Janeiro, where damage and loss of life was more extensive.
The national death toll as of Thursday was more than 400, as the government's national defense force and its parent ministry, the national integration ministry, received 700mn reais (US$419mn) in additional funds to take on the disaster.