Published Tuesday, 27 October, 5:12 p.m. ET · Source: Banco Central do Brasil
Key Facts
—The number. 20.3 million Brazilians were in risky debt in June 2026, up 75% from June 2021.
—The share. They make up 17% of everyone with debt in Brazil’s financial system.
—The response. The central bank’s president says more limits on aggressive credit offers will come this year.
—The date. Offer-blocking rules announced on 23 October take effect on 31 March 2027.
Roughly one in six Brazilians who owe money to a bank is now in what the country’s central bank calls risky debt. The Banco Central do Brasil said on Tuesday that 20.3 million people were in that position in June 2026, 75% more than five years earlier.
The figure comes from the bank’s Financial Stability Report, a twice-yearly health check on the banking system. Gabriel Galípolo, the central bank’s president, said the bank plans to add new measures to curb aggressive credit offers before the end of the year.
Borrowing in Brazil is expensive because the Selic, the central bank’s benchmark interest rate, stands at 13.75% a year. Our guide to Brazil’s economy explains why that rate weighs on families.
What Counts as Risky Debt
The central bank places a borrower in the group when at least two of four warning signs apply:
- Payments more than 90 days late.
- Debts that take more than half of monthly income.
- Use of an overdraft, an unsecured personal loan and revolving card credit at the same time.
- Income left after paying debts that falls below the poverty line.
Revolving credit is the card balance carried from month to month at very high interest. The label does not mean all 20.3 million people have stopped paying, only that they are more financially vulnerable.
Where the Worry Sits
Galípolo said the central bank is most concerned about people who already carry revolving card credit or who are seriously behind on payments. These are the borrowers who pay the highest interest and have the least room to absorb a shock.
The warning comes while interest rates are still high by global standards, which makes every unpaid balance grow faster.
The Curbs Already on the Table
On Friday, 23 October, the central bank announced rules to restrict unsuitable credit offers. Banks will have to let customers block credit advertising and unsolicited proposals.
For vulnerable or over-indebted customers, an offer will need prior, specific and clear consent. It will be limited to renegotiation or portability, which means moving a debt to a cheaper lender, with no new money lent.
The blocking rules start on 31 March 2027. In July 2027 come online debt dashboards and limits on loan offers made during a Pix payment, Pix being the central bank’s free instant-payment system.
The next steps, Galípolo said, will focus first on those same borrowers. He said the bank intends to announce additional measures before the year ends.
What It Means for US Readers
Investors in Brazilian lenders such as Itaú Unibanco (ITUB, one of Brazil’s largest banks) or Nubank (NU, a digital bank listed in New York) hold companies whose business is consumer credit. Tighter offer rules could slow new lending, while more late payments could weigh on profits.
Expats and visitors who use Brazilian credit cards may notice the change mainly as fewer unsolicited offers once the rules start in 2027. What could steady the picture is the pace of interest-rate cuts, which would ease the cost of the debt that families already carry.
What Is Not Known
The central bank has not said what its extra measures will be, beyond naming the target group and the end of the year. The 20.3 million is a measure of vulnerability, not of defaults, so the number of people who have actually missed payments is a separate figure.
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Sources
Banco Central do Brasil, Financial Stability Report, first half of 2026 · Banco Central do Brasil, announcement of 23 October 2026 on credit offers · Statements by the central bank’s president, 27 October 2026. Central bank Resolutions BCB 601, 602 and 603.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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Frequently Asked Questions
What does risky debt mean in Brazil?
A person is in risky debt when at least two of four signs apply: payments over 90 days late, debts above half of income, several costly credit lines at once, or income below the poverty line after debts.
What will Brazil’s central bank do next?
Its president says more measures will come this year, aimed first at people in revolving card credit or serious arrears. Offer-blocking rules announced on 23 October start on 31 March 2027.