‘Credito alcool gel’ unblocks Brazil’s deal flow
In stark contrast to previous periods of crisis, Brazil’s private-sector banks have been growing market share this year as the public banks have retrenched. This should translate to a busy deal pipeline as they look to refinance.
The Octavio Café – a round, birds-nest structure that sold delicious coffees and fruit juices at bankers’ expense-account prices (R$10 ($1.79) for an espresso) – was a long-time regular meeting place for those bankers and their clients up and down São Paulo’s main financial thoroughfare, Faria Lima.
There was no hint that a lack of credit was behind the decision – rather it was a curve ball thrown into the business plan. But for many other small and medium-sized enterprises, credit availability is worsening the business disruption: many owners believe their business can return when the economy reopens, but credit has been slow to arrive or hasn’t arrived at all.