The supply of corporate credit is falling in Brazil.
According to the Central Bank, free interest loans (agreed upon between the parties) to companies fell 8.6% in the month of February.
Goldman Sachs believes that this scenario will continue to worsen throughout the year.
“We expect credit conditions to tighten in the coming months due to high consumer debt levels, high rates, the prospect of slowing real activity, and the recent emergence of several corporate credit distressed situations,” a report from the bank said.
The reduction in corporate credit in Brazil has caused some companies to take on higher interest rates to roll over their debts, according to the newspaper O Estado de S. Paulo.
Gol Airlines, for example, assumed a rate of 18% to exchange papers maturing between 2026 and 2024 for bonds maturing in 2028.
Before, the rate varied between 3.75% and 8%.
Other companies unable to obtain the same resource are heading for judicial reorganization.
An emblematic case occurred last week: brewery Cervejaria Petrópolis, the owner of brands such as Itaipava and Crystal, resorted to the measure due to R$4.6 billion in debt.
Data from Serasa Experian show that requests for judicial reorganization are on the rise.
In February, 103 legal entities requested the measure.
The number represents an 87% increase over the same month last year.
The list contains companies of all sizes: nine large, 35 medium-sized, and 59 micro and small.
With information from Revista Oeste