Tax, school payments push up bounced check figures in February - Serasa

- Monday, March 21, 2011

Tax, school payments push up bounced check figures in February - Serasa

The number of bounced checks in Brazil increased in February on the back of seasonal factors, including income tax payments and the purchase of supplies for children going back to school in March, credit information firm Serasa Experian said in a report.

In February, 1.83% of checks bounced, up from 1.70% in January, the report reads.

Serasa economists said the Brazilian economy's current cycle - including monetary tightening measures from central bank BCB - has also impacted the bounced check rate, as heavily indebted consumers have seen an increase in interest rates, leaving them with fewer resources to cover their financial commitments.

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Serasa expects the number of bounced checks to rise in the coming months, which historically report seasonal increases, and in 2H11 the index will depend on BCB measures to control inflation.