Credit interest rates hit new record in April
The balance of credit operations in Brazil totaled $964.40 billion in April
The average interest rates for household credit operations rose in April, the Central Bank reported Wednesday (May 27). The increase compared to March was 1.7 percentage points, and the annual rate reached 56.1%, a peak in the time series that began in March 2011.
Nonperforming loans in arrears of more than 90 days rose slightly (0.1%) reaching 5.3% for individuals.
These figures are for nonearmarked credit operations, in which banks are free to use the money raised in the market and set the interest rates.
The highest interest rate was reported for revolving credit through credit cards, which rose 1.7 percentage points reaching 347.5% per annum. The average interest rate for installment-based buying, settlement of outstanding credit card balance, and cash withdrawals rose 3.1 percentage points to 114.6% p.a.
The overdraft rate reached 226% p.a. in April, up 5.6 percentage points from the previous month, whereas the rate for payroll-deducted loans was 26.9% p.a.
The average corporate credit rate rose 0.1 percentage points to 26.6% p.a., whereas the nonperformance rate rose 0.2 percentage points going to 3.9%.
In the case of earmarked credit operations – loans regulated by the government, channeled basically to the real estate, rural, and infrastructure sectors – the corporate credit interest rate rose 0.6 percentage points to 9% p.a., and the household rate went down 0.1 percentage points, going to 8.4% p.a.
The delinquency rate in earmarked credit operations rose 0.1% for both corporations (reaching 0.7%) and individuals (going to 1.9%).
The balance of credit operations in the country totaled $964.40 billion in April, a monthly increase of 0.1%, and 10.5% in 12 months. The year-to-date (January-April) increase was 1.4%.
Translated by Mayra Borges
Fonte: Credit interest rates hit new record in April
