Fears of a credit bubble in Brazil are increasing. A report by the rating agency Experian Latin America says the level of loans overdue by 90 days in the financial system has risen to 6.1% and it expects it to reach 8% by the end of the year.
Credit has reached 45% of GDP. Surveys suggest that the proportion of household income that goes to servicing debt is about 20%. And with interest rates still rising – the central bank’s Selic rate was raised to 12.25%
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