In August, micro and small businesses registered 183 requests for judicial recovery
Judicial recovery requests from micro and small businesses doubled from January to August 2024 compared to the same period last year, show data published on Friday 20 by Serasa Experian, the first and largest datatech in Brazil.
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According to reports, there were 1.062 requests this year for smaller projects. The number increased by 100.8% compared to the same period in 2023, when 529 have been recorded.
In August, micro and small businesses registered 183 requests for judicial recovery. In the same month last year there were 91 orders, an increase of over 100%.
According to Serasa Experian economist Luiz Rabi, “high interest rates increase the cost of credit, making it difficult for companies to repay their debts.
On Wednesday, the Monetary Policy Committee (Copom) of the Central Bank (BC) unanimously decided to increase the Selic, the base interest rate for the Brazilian economy, from 10.50% to 10.75% per annum.
“Increasing consumer defaults impact cash flow, while difficulty in accessing credit limits their financing options. In addition, high inflation reduces consumers’ purchasing power, reducing sales and impacting the financial health of businesses,” the economist says.
In the sector view, “Services” are responsible for the highest volume of requests, followed by “Commerce” and, in sequence, the “Primary” and “Industry” sectors.
Source: Terra
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